Dynegy amends settlement, plan of reorganization support agreement

By Caroline Salls

Pittsburgh, May 31 - Dynegy Inc. has entered into an amended and restated settlement agreement with notes trustee Wells Fargo Bank, NA, DO S1 Ltd., Loomis, Sayles & Co., LP and Claren Road Credit Master Fund Ltd., according to an 8-K filed Thursday with the Securities and Exchange Commission.

The company has also entered into an amended plan of reorganization support agreement.

The changes to the settlement agreement include:

• Claren Road, CQS and Wells Fargo will immediately withdraw their objections and related discovery in connection to the original May 1 settlement;

• Claren Road will immediately adjourn and/or stay any related deadlines or discovery in connection with its notice of appeal of a court order denying public access to judicial documents;

• Claren Road and CQS will immediately adjourn their motions and/or joinders for an order directing the appointment of a Chapter 11 trustee and adjourn and/or stay any related deadlines or discovery;

• Dynegy Holdings will provide Wells Fargo with an allowed $222.5 million subordinated unsecured claim; provided that, for purposes of treatment and distribution, Dynegy and Dynegy Holdings provides Wells Fargo with a $55 million general unsecured claim against Dynegy Holdings in exchange for and in full satisfaction of all subordinated notes claims; and

• Dynegy Holdings and any of its successors or transferees waive all rights to receive a distribution on account of the 8.316% common securities due 2027 issued by NGC Capital Trust I. This distribution will instead be made to holders of the NGC Trust Capital Income securities.

Dynegy said the amended plan support agreement extends the date for filing a conforming plan and disclosure statement to June 8.

The court must approve the disclosure statement by July 20 and the plan must be confirmed by Oct. 1.

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.

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