NEWARK, N.J., July 22, 2011 /PRNewswire/ -- Roseton OL, LLC and
Danskammer OL, LLC, indirect subsidiaries of Public Service
Enterprise Group (NYSE:PEG) (the "PSEG Entities"), have filed suit
against Dynegy Holdings Inc. ("DHI") in the Delaware Court of Chancery to halt DHI's
proposed transfer of certain of its coal and natural gas power
assets to new "bankruptcy remote" subsidiaries. The PSEG entities
are owner-lessors of the Danskammer and Roseton electric generating
facilities. The lessees are indirect subsidiaries of Dynegy, Inc.
and Dynegy Holdings, LLC (DHI). DHI has guaranteed to the PSEG
entities the obligations of the lessees under the leases. As of
March 31, 2011, the PSEG Entities had
a gross equity investment at risk in the Roseton and Danskammer
leases of $270 million.
DHI announced on July 11, 2011
that it intended to transfer certain of its coal and natural gas
power assets to bankruptcy remote entities, while transferring its
Roseton and Danskammer generating stations lessee interests to an
ordinary subsidiary under DHI. The plaintiffs contend that the
proposed DHI transfer of its assets is a violation of the DHI
guaranty and are therefore seeking a temporary restraining order
and permanent injunction preventing DHI from consummating these
proposed transfers.
FORWARD-LOOKING STATEMENT
The statements contained in this communication about our and our
subsidiaries' future performance, including, without limitation,
future revenues, earnings, strategies, prospects, consequences and
all other statements that are not purely historical, are
forward-looking statements for purposes of the safe harbor
provisions under The Private Securities Litigation Reform Act of
1995. Although we believe that our expectations are based on
reasonable assumptions, we can give no assurance they will be
achieved. There are a number of risks and uncertainties that could
cause actual results to differ materially from what may actually
occur. A discussion of some of these risks and uncertainties is
contained in our Annual Report on Form 10-K and subsequent reports
on Form 10-Q and Form 8-K filed with the Securities and Exchange
Commission (SEC). These documents address in further detail our
business, industry issues and other factors that could cause actual
results to differ materially from those indicated in this
communication. Forward looking statements made in this
communication only apply as of this date. While we may elect to
update forward-looking statements from time to time, we
specifically disclaim any obligation to do so, even if our internal
estimates change, unless otherwise required by applicable
securities laws.
Public Service Enterprise Group (NYSE:PEG) is a publicly
traded diversified energy company with annual revenues of more than
$12 billion, and three principal
subsidiaries: PSEG Power, Public Service Electric and Gas Company
(PSE&G) and PSEG Energy Holdings.
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SOURCE Public Service Enterprise Group (PSEG)