Dynegy Subsidiary Files Chapter 11

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.

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