Dynegy Inc., the third-largest independent U.S. power producer, said it put a group of units into bankruptcy to complete a debt restructuring agreement with noteholders.
Dynegy Holdings LLC listed assets of $13.8 billion and debt of $6.18 billion in a petition for Chapter 11 reorganization filed yesterday in U.S. Bankruptcy Court in Poughkeepsie, New York. Four units of the holding company also filed petitions.
Dynegy said in a statement that it reached an agreement with investors holding more than $1.4 billion of senior notes to restructure about $4 billion in debt. The transaction would be completed through a court-approved bankruptcy plan that must become effective by Aug. 1, the company said.
The company reported a net loss of $234 million for 2010 after a slump in the U.S. economy drove down electricity prices. The Houston-based power producer missed a $43.8 million interest payment Nov. 1 and said it was discussing options for managing its debt with certain bondholders. Two days later, Dynegy terminated a distressed-debt exchange announced in September.
The company had sought to swap as much as $1.25 billion of its outstanding notes for cash and new securities valued at less than face value. Dynegy extended the deadline in October after bondholders tendered $91 million, or just 7.3 percent of the amount the company sought to exchange.
Dynegy earlier reorganized to create one unit owning natural gas-fired power generation facilities and another that owns coal-fired plants.
Dynegy Holdings LLC listed assets of $13.8 billion and debt of $6.18 billion in a petition for Chapter 11 reorganization filed yesterday in U.S. Bankruptcy Court in Poughkeepsie, New York. Four units of the holding company also filed petitions.
Dynegy said in a statement that it reached an agreement with investors holding more than $1.4 billion of senior notes to restructure about $4 billion in debt. The transaction would be completed through a court-approved bankruptcy plan that must become effective by Aug. 1, the company said.
The company reported a net loss of $234 million for 2010 after a slump in the U.S. economy drove down electricity prices. The Houston-based power producer missed a $43.8 million interest payment Nov. 1 and said it was discussing options for managing its debt with certain bondholders. Two days later, Dynegy terminated a distressed-debt exchange announced in September.
The company had sought to swap as much as $1.25 billion of its outstanding notes for cash and new securities valued at less than face value. Dynegy extended the deadline in October after bondholders tendered $91 million, or just 7.3 percent of the amount the company sought to exchange.
Dynegy earlier reorganized to create one unit owning natural gas-fired power generation facilities and another that owns coal-fired plants.
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