As of Tuesday, a series of unusual Chapter 11 filings by subsidiaries of Houston-based energy company Dynegy Inc., appeared to be having the intended effect—at least in the short-term—of protecting the parent entity’s shareholders while reducing $4 billion in debt due to bondholders.

In a typical Chapter 11 case, bondholders are among the first to be repaid through asset sales or cash investments, while shareholders must wait at the back of the line. Dynegy is attempting to flip that formula on its head by having its Dynegy Holdings unit and several other subsidiaries seek Chapter 11 protection. (Indeed, some news accounts labeled the move an “upside-down bankruptcy.”)

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]