Dynegy Inc. seeks Chapter 11 protection
Posted on Monday, July 9th, 2012 at 8:17 pm
The Houston-based power company Dynegy Inc. has filed for Chapter 11 bankruptcy protection as part of a reorganization process so that it can merge with its subsidiary Dynegy Holdings, the Wall Street Journal reports.
Dynegy is not a stranger to bankruptcy; last November Dynegy Holdings filed for protection after years of falling energy prices. The power company is said to have had more than $5 billion in debt last year. In the first quarter, it lost $58 million.
To pay back creditors, Dynegy will pay them between 59 to 89 cents on the dollar in cash and equity. In the past year, its stock has dropped by 91 percent to 57 cents as of last Friday.
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