Bankruptcy Judge Cecelia Morris on June 1 approved a deal that will resolve more than $2.5 billion in claims of Dynegy Inc.'s bankrupt subsidiary, Dynegy Holdings LLC, the Deal Pipeline reported yesterday. Under terms of the deal, the debtor will give unsecureds 99 percent of the common equity in the reorganized company. That deal is a departure from the debtor's earlier plan, under which unsecured creditors would have received $1 billion in new 11 percent senior secured notes due 2018 issued by Dynegy Inc. and $2.1 billion in preferred stock in Dynegy Inc. But under the mediated deal, the unsecureds will now get $200 million in cash as well as nearly all the reorganized equity, according to an April 4 statement. Dynegy Holdings would hold onto the other $200 million in cash for "general corporate purposes."
