Creditors Can't Block Dynegy's $1.7B Refinancing Plan

Law360, New York (July 29, 2011, 9:20 PM EDT) -- A Delaware judge on Friday refused to block troubled power company Dynegy Inc.'s $1.7 billion restructuring plan, denying a bid by two Public Service Enterprise Group Inc. subsidiaries who objected to the proposed overhaul.

According to Delaware Court of Chancery Vice Chancellor Donald Parsons, PSEG leased two power plants in Newburgh, N.Y. to Dynegy after buying them from the company in a sale-leaseback transaction in 2001. Both sides agreed to guaranties ensuring that Dynegy would make lease payments if its subsidiaries defaulted and restricting Dynegy's ability...
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