Dynegy Inc. (Dynegy) (NYSE: DYN) announced today 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.
Court documents are available on the docket section of DH’s
reorganization website, http://dm.epiq11.com/dynegyholdingsllc.
ABOUT DYNEGY
Dynegy's subsidiaries produce and sell electric energy, capacity and
ancillary services in key U.S. markets. The Dynegy Power, LLC power
generation portfolio consists of approximately 6,771 megawatts of
primarily natural gas-fired intermediate and peaking power generation
facilities. The Dynegy Midwest Generation, LLC portfolio consists of
approximately 3,132 megawatts of primarily coal-fired baseload power
plants. The DNE portfolio consists of approximately 1,693 megawatts from
two power plants which are primarily natural gas-fired peaking and
baseload coal generation facilities.
FORWARD LOOKING STATEMENTS
This press release contains statements reflecting assumptions,
expectations, projections, intentions or beliefs about future events
that are intended as "forward-looking statements," particularly those
statements concerning the Amended and Restated Settlement Agreement, its
impact on the Chapter 11 proceedings going forward, including the
resolution of all disputes, claims and causes of action and DH’s ability
to exit the Chapter 11 proceedings during the fall of 2012. Discussion
of risks and uncertainties that could cause actual results to differ
materially from current projections, forecasts, estimates and
expectations of Dynegy is contained in Dynegy's filings with the
Securities and Exchange Commission (the "SEC"). Specifically, Dynegy
makes reference to, and incorporates herein by reference, the section
entitled "Risk Factors" in its most recent Form 10-K, as amended, and
subsequent reports on Form 10-Q. In addition to the risks and
uncertainties set forth in Dynegy's SEC filings, the forward-looking
statements described in this press release could be affected by, among
other things, (i) beliefs and assumptions regarding our ability to
continue as a going concern; (ii) ability to obtain approval of the
Bankruptcy Court with respect to the debtors’ motions in the Chapter 11
cases and to develop, prosecute, confirm and consummate one or more
plans of reorganization with respect to the Chapter 11 cases and to
consummate all the transactions contemplated by the restructuring
support agreement; (iii) Dynegy’s ability to transfer the operations
associated with the Roseton and Danskammer facilities to one or more
third parties in connection with the rejection of the related leases
under the Chapter 11 cases; (iv) the anticipated effectiveness of the
overall restructuring activities and any additional strategies to
address our liquidity and our capital resources including accessing the
capital markets; (v) limitations on our ability to utilize previously
incurred net operating losses or alternative minimum tax credits; (vi)
the timing and anticipated benefits to be achieved through Dynegy's
company-wide cost savings programs, including its PRIDE initiative;
(vii) beliefs and assumptions relating to liquidity, available borrowing
capacity and capital resources generally, including the extent to which
such liquidity could be affected by poor economic and financial market
conditions or new regulations and any resulting impacts on financial
institutions and other current and potential counterparties; (viii)
beliefs that control over Dynegy Holdings, LLC (“Dynegy Holdings”) and
its consolidated subsidiaries will likely revert to Dynegy upon
emergence of Dynegy Holdings from bankruptcy with Dynegy assuming the
obligations of Dynegy Holdings, resulting in reconsolidation; (ix)
expectations regarding compliance with Dynegy’s new credit agreements,
including collateral demands, interest expense and other payments; (x)
expectations regarding environmental matters, including costs of
compliance, availability and adequacy of emission credits, and the
impact of ongoing proceedings and potential regulations or changes to
current regulations, including those relating to climate change, air
emissions, cooling water intake structures, coal combustion byproducts,
and other laws and regulations to which Dynegy is, or could become,
subject; (xi) beliefs, assumptions and projections regarding the demand
for power, generation volumes and commodity pricing, including natural
gas prices and the impact on such prices from shale gas proliferation
and the timing of a recovery in natural gas prices, if any; (xii)
sufficiency of, access to and costs associated with coal, fuel oil and
natural gas inventories and transportation thereof; (xiii) beliefs and
assumptions about market competition, generation capacity and regional
supply and demand characteristics of the wholesale power generation
market, including the anticipation of higher market pricing over the
longer term; (xiv) beliefs and assumptions regarding our ability to
enhance or protect long-term value for stockholders; (xv) the
effectiveness of Dynegy's strategies to capture opportunities presented
by changes in commodity prices and to manage its exposure to energy
price volatility; (xvi) beliefs and assumptions about weather and
general economic conditions; (xvii) projected operating or financial
results, including anticipated cash flows from operations, revenues and
profitability, Dynegy's focus on safety and its ability to efficiently
operate its assets so as to capture revenue generating opportunities and
operating margins; (xviii) beliefs about the outcome of legal,
regulatory, administrative and legislative matters; and (xix)
expectations regarding performance standards and estimates regarding
capital and maintenance expenditures, including the Consent Decree and
its associated costs and performance standards. Any or all of Dynegy's
forward-looking statements may turn out to be wrong. They can be
affected by inaccurate assumptions or by known or unknown risks,
uncertainties and other factors, many of which are beyond Dynegy's
control.
