A federal bankruptcy judge approved Dynegy Inc. subsidiary Illinois Power Generating Co.'s Chapter 11 reorganization plan, clearing the way for a resolution in the coming weeks.
The reorganization plan for Illinois Power Generating, or Genco, was confirmed by Judge Marvin Isgur of the United States Bankruptcy Court for the Southern District of Texas Houston Division on Jan. 25, according to a statement by Dynegy.
"The plan confirmation clears the way for Genco to emerge from Chapter 11 and complete its financial restructuring, likely within the next few weeks," Dynegy said.
Counsel to Dynegy on Jan. 23 filed in support of confirmation for the prepackaged Chapter 11 reorganization plan.
Jeff Hunter, Illinois Power Generating chief restructuring officer, also filed in support on Jan. 23, saying that under terms of the reorganization plan, $825 million in debt would be eliminated at the Genco level in exchange for, "cash, new debt issued by Dynegy, and new warrants issued by Dynegy." (Case No. 16-36326)