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TheStreet Open House

Dynegy Inc. Emerges From Chapter 11

Dynegy Inc. successfully completed its Chapter 11 reorganization and emerged from bankruptcy today. The Company will have approximately $800 million in liquidity in the form of cash (restricted and unrestricted) and letter of credit capacity available to support the Company’s post emergence operations and commercial activities and this, along with the elimination of over $4 billion debt through the Chapter 11 process, gives Dynegy one of the strongest balance sheets in the independent power producers sector. The common stock and warrants to purchase common stock for the reorganized Company are expected to be listed with and begin trading on the New York Stock Exchange on Wednesday, October 3, 2012 under the symbols DYN and DYNw, respectively. The reorganized Company will have approximately 100 million shares outstanding.

“We are very pleased to announce the successful completion of our financial restructuring and emergence in what can be considered a relatively quick timeframe due to the collaboration of our stakeholders during the Chapter 11 process,” said Robert C. Flexon, Dynegy President and Chief Executive Officer. “Dynegy is well positioned for success and we are committed to creating value for our investors. With the Chapter 11 process behind us, our focus is exclusively on executing our forward strategy. With our balanced asset portfolio, along with operational, commercial and financial discipline and our dedicated workforce, we are confident that we will deliver favorable results in the current as well as future market environments.”

As part of the reorganization, on September 30, 2012, Dynegy Holdings, LLC merged with and into Dynegy Inc. Under the terms of the Joint Chapter 11 Plan of Reorganization (the Plan) in exchange for the elimination of over $4 billion in debt and other obligations, unsecured creditors are receiving common equity representing a 99% stake in the reorganized Company and $200 million in cash. Legacy stockholders are receiving a 1% stake in the reorganized Company and 5-year warrants to purchase up to 13.5% of the common stock of the reorganized Company (on a fully-diluted basis) to be exercisable at $40 per share. Dynegy expects that it will initiate distributions of stock and cash to creditors and stockholders, according to the terms of the Plan, starting on October 2, 2012. The reorganized Company will have approximately 15.6 million warrants outstanding (with shares of common stock authorized and reserved for issuance on a one-for-one basis), and approximately 6.1 million shares of common stock authorized and reserved for issuance for distributions to be made under Dynegy’s employee incentive plan.

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