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Dynegy Disappointed with Court-Appointed Examiner’s Report (DYN)

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DynegyDynegy Inc. (NYSE: DYN), a producer and seller of electric energy, capacity and ancillary services, today, said that it was “disappointed”  by a court-appointed examiner’s report, which accused the company of fraudulent practices before its unit filed for bankruptcy.

The examiner , Susheel Kirpalani, said in a report last week that Dynegy harmed creditors by fraudulently transferring certain coal-powered plant assets to itself before its unit filed for bankruptcy. The examiner has asked the company to reverse the transfer.


Dynegy has responded to the allegations by saying that the report was not the conclusion of any court. The company said that the examiner had improperly assumed insolvency of Dynegy Holdings at the time of the transactions and also ignored important evidence to the contrary.

Dynegy noted that the allegation of a fraudulent transfer is incorrect. The company said that there was no intent to hinder or delay creditors in the transfer of assets.

Dynegy said that it remains committed to working with all creditor groups to reach a consensual restructuring agreement that is beneficial to all stakeholders.

Dynegy Holdings, a unit of Dynegy, had filed for bankruptcy back in November in order to restructure expensive leases on power plants and reduce its debt burden.

Dynegy shares have risen sharply in pre-market trading today. At last check, the stock was trading 5.43% higher at $0.660.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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