Dynegy Inc. on Friday won a U.S. bankruptcy judge's approval of a settlement with creditors, putting the power producer's Dynegy Holdings LLC unit one step closer to emerging from chapter 11 protection, Reuters reported on Friday. Chief Judge Cecelia Morris approved the settlement at a hearing as some creditors last week dropped their opposition to the accord. Under the settlement, Dynegy and Dynegy Holdings would be combined, the Houston-based company said. Dynegy Holdings' unsecured creditors, including holders of about $3.4 billion of senior notes, would receive a 99 percent equity stake in the combined company, while the Houston-based parent would receive the remaining 1 percent plus warrants.
