Dynegy, Creditors Reach Deal Over Bankrupt Subsidiary

Law360, New York (April 4, 2012, 3:08 PM EDT) -- Power company Dynegy Inc. has reached an agreement in principle with creditors holding more than $2.5 billion in claims against bankrupt subsidiary Dynegy Holdings LLC, resolving all disputes and claims between DH and its parent, Dynegy said Wednesday.

The agreement, which is subject to court approval and would be included as a settlement in the Chapter 11 plan, would see DH's unsecured creditors receive common equity in a reorganized company as opposed to the currently contemplated distribution of new senior secured notes and preferred stock. Creditors...
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