Dynegy Creditors Ask For Probe Of Pre-Ch. 11 Transfers

Law360, Wilmington (November 14, 2011, 3:23 PM EST) -- Bondholders of Dynegy Holdings LLC’s two operating units asked a New York bankruptcy judge on Friday to appoint an examiner to probe the power company’s $1.7 billion prepetition restructuring, alleging the deal improperly bumped shareholders ahead of creditors in line to be repaid.

The bondholders funded a $920 million leaseback deal for the units, Dynegy Danskammer LLC and Dynegy Roseton LLC, whose burdensome lease obligations the holding company hopes to cast off in the bankruptcy. U.S. Bank National Association, as indenture trustee for bondholders, lodged the...
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