July 6, 2012 / 9:19 AM / 6 years ago

Dynegy Inc files for bankruptcy

(Reuters) - Dynegy Inc DYN.N, the parent company of Dynegy Holdings, filed for bankruptcy protection on Friday morning as part of its settlement agreement with creditors.

Last month, a bankruptcy court approved the company’s settlement with creditors under which Dynegy and Dynegy Holdings would be combined, with creditors holding a 99 percent equity stake in the combined company.

On Thursday, the court approved the reorganization plan of Dynegy Holdings which clears the way for it to seek approval from creditors.

Dynegy units that operate its coal and gas-fired businesses have not been included in Friday’s Chapter 11 filing, Dynegy said in a statement.

The company in 2001 set and then canceled plans to buy Enron Corp as the business and finances of its larger rival deteriorated quickly.

The case is In re: Dynegy Holdings LLC et al, U.S. Bankruptcy Court, Southern District of New York, No. 11-38111; and Dynegy Inc, U.S. Bankruptcy Court, Southern District of New York, No. 12-36728.

Reporting by Tanya Agrawal in Bangalore; Editing by Joyjeet Das

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