SOURCE: NEAH

November 23, 2010 09:54 ET

Newco Energy Acquisition Holdings, LLC and Karl W. Miller on Dynegy: Shareholders Must Quickly Gain Control Through Shareholder Consents to Preserve Value and Stop Additional Destructive Behavior by Board

NEW YORK, NY and WILMINGTON, NC--(Marketwire - November 23, 2010) - Newco Energy Acquisition Holdings (NEAH), LLC and Senior Energy Industry Executive Karl W. Miller believe Dynegy shareholders must quickly gain control of company through shareholder consents to preserve value and stop additional destructive behavior by current board and management.

NEAH and Mr. Miller advised shareholders the Blackstone bid was a distraction. Now that the Blackstone distraction has been removed from the table, Dynegy Board of Directors and Management has immediately thrown another landmine in front of shareholders who are seeking to turn Dynegy around and into a profitable growth company. 

As shareholders, NEAH and Mr. Miller believe the Dynegy Board of Directors and Management continue to act outside the scope of their fiduciary obligations, continue to act outside the will of all shareholders, and continue to work for their own personal self interest and ego.

NEAH and Mr. Miller believe that shareholders must promptly focus on replacing senior management and the Board of Directors, while carefully negotiating the change of control severance time bombs embedded by the Dynegy Board and Management. 

NEAH and Mr. Miller believe that key operational personnel must be retained, a credible and earnings accretive growth plan must be implemented, putting in place new supporting capital facilities to support growth and acquisitions, planning to retire excess debt at discounts to face value, and planning to negotiate the extension of remaining debt maturities, while sharing some of the cash savings with shareholders though a modest special dividend, among many other critical tasks.

Dynegy credibility in the energy sector and capital markets can be re-established, which will enable the Company to grow and prosper.

Disclaimer: The views expressed are those of NEAH and Mr. Miller. No capital or shareholder agreements or other arrangements are in place, NEAH and Mr. Miller are not soliciting capital or shareholder votes, and do not intend to file a Proxy. No offering memorandums or other solicitation documents have been distributed. NEAH and Mr. Miller have provided their combined opinion in open disclosure to all parties that Dynegy Inc. Shareholders have credible alternatives to build an earnings accretive energy company. Investors should seek the advice of a qualified investment professional prior to making any investment decisions.

About Mr. Miller:

Background about Mr. Miller may be found at the following weblink:

http://www.linkedin.com/profile/edit?id=35847711&trk=hb_tab_pro_top