US Trustee Fights Confirmation Of Dynegy Ch. 11 Plan

Law360, New York (August 28, 2012, 1:12 PM EDT) -- The U.S. trustee objected Monday to confirmation of Dynegy Inc. and Dynegy Holdings LLC's joint Chapter 11 plan, saying it contains nondebtor third-party releases and exculpation provisions that the debtors have not shown comport with Second Circuit law or the Bankruptcy Code.

U.S. Trustee Tracy Hope Davis, who oversees bankruptcies in Region 2, which includes the Southern District of New York, said the debtors have failed to meet their burden of proof in showing the plan satisfies Section 1129 of the Bankruptcy Code.

“Unless and until...
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