Dynegy Subsidiaries File for Bankruptcy

Subsidiary Dynegy Holdings, LLC and four of its wholly owned subsidiaries -- Dynegy Northeast Generation, Inc., Hudson Power, L.L.C., Dynegy Danskammer, L.L.C. (Danskammer) and Dynegy Roseton, L.L.C. (Roseton) -- have filed for bankruptcy under Chapter 11.

The so-called Debtor Entities' only operations consist of those at the Roseton and Danskammer facilities, which are the subject of leases that the Debtor Entities are seeking to immediately reject pursuant to a motion filed in bankruptcy court.

Dynegy said that parent company Dynegy Inc. and all of its other subsidiaries, including those that own and operate the company's coal-fired and gas-fired businesses that were separately financed earlier this year and those that provide ancillary services, have not filed for Chapter 11. Dynegy said that all such entities continue to operate their businesses in the ordinary course without any impact from the limited Chapter 11 filings of Dynegy Holdings and its subsidiaries that are involved with the Roseton and Danskammer facilities.

Robert C. Flexon, President and Chief Executive Officer of both Dynegy and Dynegy Holdings, said, "This marks an important next step in the Company's ongoing effort to restructure its consolidated balance sheet and to position its assets in a fashion that will maximize our operational flexibility."

Earlier, Dynegy separated its coal and gas-fired generation assets from the subsidiaries holding and issuing debt to protect such assets in a bankruptcy filing. Bondholders have challenged such moves in court.