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HOUSTON (AP) — Dynegy Inc. said Monday that its creditors overwhelmingly voted in favor of the Chapter 11 reorganization plan filed by the electricity producer and seller.
A court hearing on confirming the plan is scheduled for Sept. 5. Dynegy expects to emerge from bankruptcy, along with its Dynegy Holdings subsidiary, shortly after the plan is confirmed.
Dynegy said creditors holding about $3.5 billion in claims voted to approve the reorganization plan, representing more than 99 percent of the value of claims for which votes were cast.
The Houston-based company proposes to have a seven-member board after it exits bankruptcy, named by a selection committee appointed by its creditors.
Dynegy filed for bankruptcy protection on July 6 as part of a plan to reorganize after years of being hammered by falling electricity prices. The company produces electricity and sells it on the open market. Dynegy's coal and natural gas-fired power plants are owned by separate subsidiaries that aren't part of the bankruptcy filing.
Dynegy filed for Chapter 11 protection as part of an ongoing plan to manage debts that topped $5 billion last year. The reorganization plan calls for paying creditors 59 to 89 cents on the dollar in cash and equity.
Dynegy said Monday that President and CEO Robert Flexon will remain on the board under its reorganization plan.
The proposed chairman is Pat Wood III, who has served as a principal of Wood3 Resources, an energy infrastructure developer, since July 2005.
The remaining slate of proposed directors includes:
— Hilary Ackermann, who was chief risk officer with Goldman Sachs Bank USA from 2008 to 2011;
— Paul Barbas, former president and CEO of DPL Inc. and its principal subsidiary, The Dayton Power and Light Co.
— Richard Kuersteiner, a member of the Franklin Templeton Investments legal department from 1990 until May 2012;
— Jeffrey Stein, co-founder and managing partner of Power Capital Partners LLC
— and John Sult, chief financial officer of El Paso Corp. from November 2009 until May 2012.