51 Facts About Dynegy

Dynegy Inc is an electric company based in Houston, Texas, in the United States.

Dynegy is located at 601 Travis Street in Downtown Houston.

Dynegy maintained a rivalry with the Houston-based Enron energy and trading firm, which it agreed to buy in 2001.

Dynegy withdrew from the deal as the extent of wrongdoing by Enron emerged.

Dynegy nearly went bankrupt in 2002, and several executives were eventually convicted of financial fraud and mismanagement.

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Dynegy exited the energy trading business in 2002 and the natural gas supply business in 2005, focusing its efforts on electrical generation.

Dynegy Inc was the subject of two unsuccessful takeover efforts in 2010.

Dynegy bought Illinova Corporation in 1999 in a deal worth US$1.

Dynegy began branching into areas outside natural gas and electrical generation.

In 2001, Dynegy made a white knight US$8 billion takeover bid for Enron, which was saddled with $13 billion in debt and whose stock had plummeted.

In financial distress, Dynegy successfully applied for a US$900 million line of credit.

Dynegy announced it might need a financial partner to help it stabilize.

Dynegy later fired five traders after the Commodity Futures Trading Commission discovered that Dynegy energy traders had supplied false prices to industry trade publications.

Still needing cash, Dynegy sold its Hornsea natural gas storage site in the United Kingdom to help pay the fine.

Several Dynegy executives were later convicted or indicted for their roles in Dynegy's near-collapse.

Six weeks later, Dynegy hired Nick J Caruso, a former chief financial officer at Royal Dutch Shell, as its new chief financial officer.

Dynegy undertook a strategy to move into coal-fired and hydroelectric electrical generation in 2004, and out of natural gas distribution and trading.

In mid-2005, Dynegy hired Credit Suisse First Boston to assist it in finding a buyer for its natural gas transmission businesses.

The sale of this business came quickly: In August 2005, Dynegy sold this business to Targa Resources, a company owned by private equity firm Warburg Pincus.

Under the terms of the agreement, Dynegy gave LS Power a 40 percent stake in Dynegy itself while LS Power contributed 10 of its power plants.

Dynegy agreed to create a 245 million new Class B shares, which it turned over to LS Power.

Dynegy's shares fell 80 percent in the two years after the deal closed, and the company posted a large $345 million loss in the second quarter of 2009.

Dynegy's move into coal-powered electrical generation was not without controversy.

Dynegy executives said the offer was a good one, as the deal would give Dynegy access to lines of credit which would enable it to refinance and restructure its debt.

Dynegy's board urged shareholders to accept the Icahn bid, or risk bankruptcy.

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Dynegy had structured itself so that Dynegy Inc had little debt.

Dynegy Inc created three operating divisions: the natural gas group, the coal group, and a group for all other businesses .

The goal was to protect Dynegy's secured creditors at the expense of its unsecured creditors.

The examiner found that Dynegy Holdings was already bankrupt at the time the sale took place, and therefore constituted a breach of fiduciary duty by the Dynegy Holdings board of directors.

Dynegy's stock was delisted from the New York Stock Exchange following the bankruptcy filing.

Dynegy blamed, among other things, markedly lower demand for its electricity, much lower prices for its coal, and a $941 million noncash loss caused by the transfer of its coal unit to Dynegy Holdings.

Dynegy said it now hoped to emerge from bankruptcy in September 2012.

Dynegy agreed to auction off its Roseton and Danskammer energy plants in New York state in order to emerge from bankruptcy.

Dynegy had signed a sale-leaseback agreement in 2001 with Public Services Enterprise Group for the Roseton and Danskammer facilities.

Dynegy agreed to pay holders of $206 million in subordinated capital income securities just $55 million in principal and $16 million in interest to settle their claims.

Dynegy's bankruptcy left $17 million in unpaid property taxes in Orange County, New York.

In mid-March 2013, Dynegy purchased three electric generating subsidiaries of Ameren, an Illinois power company.

Dynegy formed a subsidiary, Illinois Power Holdings, to purchase the Ameren subsidiaries.

Dynegy agreed to honor the union collective bargaining agreements in force at all plants.

Under the deal, Dynegy acquired five coal-fired generating plants: Coffeen in Coffeen, Illinois; Duck Creek in Canton, Illinois; E D Edwards in Bartonville, Illinois; Joppa in Joppa, Illinois; and Newton in Newton, Illinois.

Dynegy used this income to retire an $800 million, seven-year line of credit and a $500 million, two-year line of credit.

Dynegy agreed that the revolving credit line would be paid off and terminate within five years.

The agency said that it Dynegy's study showed it charging market rates for energy in the Midwest.

FERC asked Dynegy to provide additional information on transmission limitations and market area expansion.

ACM Partners, a financial firm hired by the Sierra Club, argued that Dynegy purposefully left IPH significantly underfunded and unable to tap into the parent company's resources.

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Dynegy disagreed, but the firm warned that if IPH went bankrupt, workers would lose pensions and local communities would have to pay for any environmental remediation.

Foresight Energy, a major Illinois coal mining company, said it would install the $500 million anti-pollution devices for free if Dynegy agreed to sign a long-term contract to accept coal only from Foresight Energy.

Dynegy declined the offer, and environmental groups opposed it.

Julien Dumoulin-Smith, executive director of UBS Investment Research, said Dynegy is far more likely to shutter all five coal-powered plants rather than add pollution control devices.

Dynegy acquired Duke's Midwest Generation assets and retail business for $2.

In June 2021, the Attorney General of Illinois filed a lawsuit against Dynegy claiming that the company polluted groundwater with contaminants from coal ash.