Power producer Dynegy Inc. works to retain NYSE stock listing

Dynegy Inc. (NYSE: DYN), which has had its Dynegy Holdings operation in bankruptcy protection since last November, said April 11 that on April 5 the company was notified by the New York Stock Exchange that it was not in compliance with a NYSE continued listing standard.

That standard requires that the average closing price of a listed company’s common stock not fall below $1.00 per share for any consecutive 30-trading-day period. Under NYSE rules, Dynegy has six months from the receipt of the NYSE notice to regain compliance with the minimum share price requirement. During that period, Dynegy’s common stock will continue to be listed and traded on the NYSE, subject to the company’s compliance with other NYSE continued listing requirements. Dynegy said it will notify the NYSE of the steps it will take to cure this price deficiency within the prescribed timeframe.

Dynegy Inc.’s stock price has plunged, from around $8/share a year ago, to less than $1/share since early March.

Dynegy’s subsidiaries produce and sell electric energy, capacity and ancillary services in key U.S. markets. The Dynegy Power LLC (called GasCo) portfolio consists of about 6,771 MW of primarily natural gas-fired intermediate and peaking power generation facilities. The Dynegy Midwest Generation LLC (CoalCo) portfolio consists of about 3,132 megawatts of primarily coal-fired baseload power plants. The DNE portfolio, which includes the bankrupt Dynegy Holdings assets, consists of about 1,693 MW from two power plants, Roseton and Danskammer, which are primarily gas-fired peaking and baseload coal facilities.

The latest filing in the Dynegy Holdings bankruptcy case came on April 11 when Susheel Kirpalani, an examiner appointed by the court to look into the company’s finances, moved to quash a subpoena for production of documents by Claren Road Asset Management LLC. Claren Road has subpoenaed the examiner for documents used to support Kirpalani’s recent report that was critical of how Dynegy Inc. separated its assets last year, protecting most of them from the later Dynegy Holdings bankruptcy filing

“The examiner moves to quash the subpoena because responding to the requested discovery is inconsistent with the purpose of the examiner’s appointment, will compromise the integrity of the investigative process, and will violate various court orders prohibiting the examiner from disclosing the requested documents to any party except the court,” Kirpalani wrote.

Dynegy Inc. announced April 4 that it has reached an agreement in principle with creditors holding over $2.5bn of claims against Dynegy Holdings. Dynegy Inc.’s stock price didn’t sustain any price uptick after that announcement and has continued its slow erosion since then, falling to about 40 cents per share currently.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.