Judge Orders Probe Into Dynegy Restructuring

Law360, New York (December 16, 2011, 9:17 PM EST) -- A New York bankruptcy judge on Friday ordered an examiner to probe Dynegy Holdings LLC's controversial $1.7 billion restructuring, which critics say dumped two money-losing power plants onto debtors while investor Carl Icahn and other shareholders walked away winners.

The disgruntled bondholders asked for the appointment of an examiner in November. An attorney for U.S. Bank NA, as indenture trustee for bondholders, confirmed that U.S. Bankruptcy Judge Cecelia G. Morris granted the motion at a court hearing.

The examiner would be the first independent investigator to...
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