March 9 A court-appointed examiner investigating the bankruptcy of Dynegy Holdings LLC said on Friday that the company had improperly moved assets related to coal-powered plants to its nonbankrupt parent, Dynegy Inc , hurting creditors.
The examiner, Susheel Kirpalani, nonetheless said a bankruptcy judge could confirm a Chapter 11 plan for Dynegy Holdings, but that the coal assets should be deemed the property of that holding company's bankruptcy estate rather than power producer Dynegy Inc.
Dynegy Holdings filed for Chapter 11 protection on Nov. 7, hoping to restructure more than $4 billion of debt. Bondholders objected to the restructuring, saying they would suffer losses while shareholders including billionaire financier Carl Icahn and the Seneca Capital hedge fund would be protected.
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