Court confirms Dynegy and Dynegy Holdings joint plan of reorganization

Dynegy Inc. (DYNIQ) and Dynegy Holdings LLC announced that the Honorable Cecelia G. Morris of the United States Bankruptcy Court for the Southern District of New York confirmed the Dynegy and Dynegy Holdings Joint Chapter 11 Plan of Reorganization (the Plan).

After a hearing on September 5, 2012, the Court ruled that Dynegy and Dynegy Holdings had met all requirements to confirm the Plan. The Court’s confirmation sets the stage for Dynegy to emerge from bankruptcy as planned on or prior to October 1, 2012. Prior to emergence, Dynegy Holdings will merge with and into Dynegy Inc. with Dynegy Inc. being the surviving company.

The Plan substantially strengthens Dynegy’s balance sheet by converting approximately $4 billion of senior and subordinated debt into equity. Dynegy is seeking to have the common stock and warrants that will be issued pursuant to the Plan listed on the New York Stock Exchange following emergence.

“Today’s confirmation hearing marks a significant milestone towards the finish line of Dynegy’s successful restructuring process. Our renewed financial strength and flexibility positions us well in today’s challenging power markets,” said Robert C. Flexon, Dynegy President and Chief Executive Officer. “We appreciate the focus and commitment of our employees, and all of the stakeholders involved throughout the restructuring process. We’re excited for our future and the combination of our motivated employees, high-quality assets and financial strength provides the foundation for success in the days to come.”