Independent power producer Dynegy Inc. said that it has won court approval of its bankruptcy plan and expects to emerge from chapter 11 by Oct. 1, Reuters reported yesterday. The plan approved Bankruptcy Judge Cecelia Morris calls for a combination of Houston-based Dynegy and its Dynegy Holdings unit into a new company led by current CEO Robert Flexon, and in which creditors would take a 99 percent stake. Shareholders would get a claim for the other 1 percent, plus warrants that could boost their stake to 13.5 percent in five years. Unsecured creditors would recover 59 cents to 89 cents on the dollar, and existing shareholders would recover nothing.
