Power Company Based in Houston Files for Bankruptcy

by San Antonio Attorney

Illinois Power Generating Co., an energy company under Dynegy Inc., filed for Chapter 11 bankruptcy following a reorganization plan.

The company reported approximately $970.41 million worth in debts and another $450.14 million in assets, according to the bankruptcy filing made in the court of the Southern District of Texas.

Otherwise known as Genco, the company will maintain business operations throughout the restructuring plan, according to a press release.

With the Chapter 11 filing, Genco can have the opportunity to negotiate with its creditors to restructure debts in an easier way.  Chapter 7 does not provide the opportunity for restructuring, since it focuses more on assets liquidation as a means to pay off debt.

Following the prepackaged restructuring plan, the executives at Genco are allowed to facilitate the exchange of unsecured debt in place of a new debt from Dynegy.  This will also give Dynegy the right to purchase shares in the future.

David Onufer, the representative for Dynegy, said that the company’s Chapter 11 filing provides a huge benefit.

Onufer added that the probable outcome of the company’s fate is positive, especially in Chapter 11 restructuring plans.  The plan will also cover the unsecured debt of Genco worth $825 million.

Genco was formerly known as Ameren Energy Resources prior to Dynegy’s acquisition of the subsidiary last 2013.  The headquarters is located at the 601 Travis Street in downtown Houston.

Dynegy is considered to be the 58th largest company in Houston and generated almost $2.5 billion in 2014.  Dynegy also holds the largest amount of employees, according to the Houston Business Journal.

The company recently closed a deal in a joint-venture power plant located in Elwood, Illinois.  This deal will aid in paying the remaining interest of another company, as a part of another joint venture.

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