Dynegy inks Coal Holdco membership contribution, assignment agreement

By Caroline Salls

Pittsburgh, June 11 - Dynegy Inc. and Dynegy Holdings, LLC have entered into a contribution and assignment agreement, according to an 8-K filed Monday with the Securities and Exchange Commission.

Under the agreement, Dynegy Inc. contributed and assigned to Dynegy Holdings all of its right, title and interest in all of the membership interests of Dynegy Coal Holdco, LLC.

In consideration for the contribution, Dynegy Inc. has received an allowed administrative claim in an unliquidated amount in Dynegy Holdings' Chapter 11 cases. Additionally, a pre-bankruptcy lawsuit, adversary proceeding and intercompany receivable were dismissed with prejudice or released.

According to the 8-K, Dynegy Inc., Dynegy Holdings and Dynegy Gas Investments, LLC entered into a membership interest purchase agreement on Sept. 1, 2011.Under that agreement, Dynegy Gas sold 100% of the outstanding Coal Holdco membership interests to Dynegy Inc.

Dynegy Gas subsequently assigned its rights to receive payments under that purchase agreement to Dynegy Holdings in exchange for a $1.25 billion promissory note.

Under the company's amended settlement agreement, Dynegy said the undertaking agreement and the related Dynegy Holdings note have been terminated.

Dynegy Holdings and four subsidiaries filed for bankruptcy on Nov. 7, 2011 in the U.S. Bankruptcy Court for the Southern District of New York. The Chapter 11 case number is 11-38111.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.