Dynegy Inc. (NYSE: DYN) announced that it has received approval from the U.S. Bankruptcy Court for its amended and restated settlement agreement that was executed on May 30, 2012 with all of its major creditor constituencies, including holders of a significant portion of DH’s senior notes, certain lease certificate holders and holders of a majority of its outstanding subordinated notes.
Creditors who are parties to the settlement agreement hold over $2.7 billion of claims against Dynegy’s subsidiary, Dynegy Holdings, LLC (DH). The amended and restated settlement agreement resolves all disputes, claims and causes of action between and among DH, Dynegy and the settling parties, with respect to the matters therein.
Dynegy expects to file an amended plan of reorganization and related disclosure statement for DH in the near future, which will be subject to a formal creditor vote and confirmation by the U.S. Bankruptcy Court.
“Today’s approval of the settlement agreement marks a significant move forward in DH’s Chapter 11 case and establishes the foundation for the remaining steps in the restructuring process. We are pleased that all major creditor groups are now a part of the settlement agreement and look forward to their continued support as we work together towards a fall 2012 Chapter 11 emergence date,” said Robert C. Flexon, President and Chief Executive Officer of both Dynegy and DH.