Posted on Monday, July 9th, 2012 at 9:04 pm
Houston-based power company Dynegy Inc. filed for Chapter 11 bankruptcy protection last week in order to bounce back from falling electricity prices. Dynegy Inc. plans on merging with its subsidiary Dynegy Holdings, the Wall Street Journal reports.
Plunging electricity prices has caused the company to surpass $5 billion in debts and its shares to plunge by 91 percent. In the first quarter of this year, Dynegy reported a loss of $58 million.
In order to pay back its creditors, Dynegy will pay them 59 to 89 cents on the dollar in cash or equity. Its coal and natural gas power plants will continue to operate as usual during bankruptcy proceedings.
If you need help during this stressful and confusing time, contact the bankruptcy attorneys at the Law Office of Russell Van Beustring, P.C. by calling 713-973-6650.