Dynegy (DYN.N) is being sued by a group of affiliated creditors that contend the independent power producer's recently announced restructuring would siphon off assets related to their debt, and has already cost them millions of dollars. In a complaint filed Thursday, LibertyView Credit Opportunities Fund and four other funds sharing the LibertyView name asked a New York state court in Manhattan to stop Dynegy from completing the restructuring announced earlier this month. Dynegy is trying to change the ownership structure for some of its gas and coal power plants and issue new debt. The company launched the restructuring process after failing to sell itself earlier this year. The company was not immediately available for comment. In their complaint, the LibertyView funds said "virtually every actual revenue generating asset is being siphoned out ... and deliberately placed beyond the reach of (Dynegy's) creditors."
Dynegy Inc. (Dynegy) is a holding company and conducts the business operations through its subsidiaries. Shares of DYN fell by 1.17% or $-0.07/share to $5.90. In the past year, the shares have traded as low as $2.76 and as high as $6.92. On average, 2021780 shares of DYN exchange hands on a given day and today's volume is recorded at 2889695.
Source
