News / Finance
Dynegy Puts Subsidiaries into Bankruptcy Protection
Dynegy Inc., the country’s third largest independent energy provider, filed to have some subsidiaries into bankruptcy protection as a part of a restructuring agreement with loan holders.
Dynegy Holding’s LLC listed their debts at $6.18 billion with assets close to $13.8 billion. They filed for a Chapter 11 debt relief plan with the U.S Bankruptcy Court in Poughkeepsie, NY on Monday. Four of their units also filed for bankruptcy protection.
The company has come to an agreement to pay debtors $1.4 billion of older loans to restructure $4 billion in debt. The terms of the agreement are supposed to take effect by August 1st if approved by the bankruptcy court. They also want to end the leases for the Roseton and Danskammer plants.
Dynegy, like so many other companies, suffered after the economy collapsed in 2009. They lost close to $234 million because the economic slum drove down electricity prices.
Bankruptcy attorneys helped both large and small companies get some relief form their overwhelming debt.
Dynegy is offering bondholders 85 cents on the dollar. Under a debt relief plan, a bankruptcy lawyer will assess a company’s income and negotiate with debtors to determine how much of the original debt can be paid back. Sometimes bankruptcy requires a business to liquidate or sell off some of their assets.
A bankruptcy attorney is the most qualified person to advise a company which debt relief structure will work best for the troubles business.
