Dynegy Subsidiary Files Chapter 11

A subsidiary of Houston-based power company Dynegy Incorporated is preparing to file for Chapter 11 bankruptcy protection as early as this evening.

businessman covering fundsThe filing by subsidiary Dynegy Holdings would protect shareholders of the parent company, including billionaire investor Carl Icahn, according to reports by the Wall Street Journal and others.

Dynegy, which sells electricity to grids and utilities in the Midwest, the Northeast, and the West, has been hurt by lower power prices over the last two years. In April, the company hired financial advisers to help it restructure its debt and to try to sell assets to avoid a bankruptcy filing.

Dynegy shares fell 35¢, or 10.6%, to close at $2.95.


Andrew Schneider

Andrew Schneider

Politics and Government Reporter

Andrew heads Houston Public Media’s coverage of national, state, and local elections. He also reports on major policy issues before the Texas delegations in the U.S. House and Senate, as well as the Texas governorship, the state legislature, and county and city governments. Before taking up his current post, Andrew...

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