The Daily Docket: Dynegy Holding Company Enters Bankruptcy

Dynegy Inc.’s holding company filed for Chapter 11 protection Monday night, The Wall Street Journal reports. The bankruptcy filing could cause bondholder losses without harming shareholders of the parent company.

Corporate bankruptcy filings are leveling off after months of steady declines, hinting at the quickening undercurrent of distress felt across a spectrum of U.S. businesses. Read the Daily Bankruptcy Review article here.

Struggling Beacon Power Corp. moved to protect the value of $166 million in tax breaks that the Massachusetts business has gathered after years of seeping money while it developed its electricity-storage technology. Click here to read the article in DBR Small Cap.

(The Daily Bankruptcy Review and DBR Small Cap are daily newsletters with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial to DBR, click here. For DBR SC, click here.)

MF Global Holdings Ltd. and J.P. Morgan Chase & Co. worked together before MF Global’s collapse, and then things got messy, WSJ reports. People close to MF Global say J.P. Morgan stalled when selling MF Global trades, and the spat is coming during a search for missing client money.

J.P. Morgan, Bank of America and Wilmington Trust Co. are part of MF Global’s unsecured creditors committee, Reuters reports.

A bunch of smaller Lehman Brothers Holdings Inc. investors are balking at the company’s Chapter 11 plan, WSJ reports.

According to the Chicago Tribune, U.S. Bankruptcy Court Judge Kevin Carey’s recent finding for certain Tribune Co. noteholders might help Chairman Sam Zell recoup some money.

Officials in Jefferson County, Ala., will decide Tuesday whether to put the ailing county into Chapter 9 protection, the Birmingham News reports.

Bloomberg reports that leaders of Harrisburg, Pa., agreed to sell city assets in a plan to keep the struggling city from becoming the first to be put under a receiver through the state’s crisis-management plan.

According to WSJ, Los Angeles Dodgers owner Frank McCourt and Major League baseball agreed on an auction structure.

Delphi Automotive PLC has set its initial public offering, and major shareholder John Paulson may sell up to $580 million in stock, WSJ reports.

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