U.S. power producer Dynegy Inc. said yesterday that it has emerged from chapter 11, less than a month after winning court approval for its bankruptcy plan, Reuters reported yesterday. The Houston-based company said it will have about $800 million in liquidity in the form of cash and will have eliminated more than $4 billion in debt through the chapter 11 process. In exchange for the elimination of debt and other obligations, unsecured creditors will receive equity representing a 99 percent stake in the reorganized company and $200 million in cash. Dynegy Inc. filed for bankruptcy in July while Dynegy Holdings filed for protection from creditors on November 7, burdened by costly power plant leases and amid a dispute over whether its parent had acted properly two months earlier in taking about $1.25 billion of its coal-powered plant assets.
