Creditors of power producer Dynegy Inc. and its Dynegy Holdings LLC unit voted overwhelmingly in favor of their joint bankruptcy reorganization plan, and the companies expect to emerge from chapter 11 shortly after the plan wins court approval, Reuters reported yesterday. Dynegy said Bankruptcy Judge Cecelia Morris had scheduled a Sept. 5 hearing to confirm the plan, which won backing from creditors holding about $3.5 billion of claims, more than 99 percent of the value that voted. The reorganization plan calls for Dynegy and Dynegy Holdings to merge, with creditors taking a 99 percent stake in the combined company, and shareholders getting a claim for the remainder plus warrants. Unsecured creditors would recover 59 cents to 89 cents on the dollar, and existing shareholders would recover nothing, court papers show.
