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Dynegy subsidiary Illinois Power Generating exits Ch. 11

Dynegy Inc. subsidiary Illinois Power Generating Co. emerged from its Chapter 11 restructuring Feb. 2, according to a news release.

Illinois Power Generating, commonly known as Genco, filed for Chapter 11 in December 2016 with a prepackaged debt restructuring plan approved by the Southern District of Texas Bankruptcy Court on Jan. 25.

Through the reorganization, the company said it successfully eliminated approximately $825 million of unsecured Genco bonds. The reorganization plan provided participating Genco noteholders their share of $181.7 million of unsecured senior notes due 2024 at a coupon rate of 8.034%, 8.6 million seven-year warrants issued by Dynegy exercisable for one share of Dynegy common stock at a $35.00 price and $87.1 million in cash.

Additionally, Genco provided noneligible Genco bondholders approximately $17.1 million cash and reduced annual cash interest expense by approximately $45 million.

The Genco restructuring simplified Dynegy's capital and organizational structure and positioned its power plants more competitively, the companies said in the news release.