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.