SOURCE: NEAH

November 08, 2010 15:57 ET

Newco Energy Acquisition Holdings, LLC Reaffirms Its Position That Dynegy Inc. Shareholders Should Reject the Blackstone Group Bid

NEW YORK, NY and WILMINGTON, NC--(Marketwire - November 8, 2010) -  Newco Energy Acquisition Holdings (NEAH), LLC and Senior Energy Industry Executive Karl W. Miller today announced that they have again reviewed all of the various Proxy advisory firms' published recommendations and presentations filed by Seneca. Upon additional review, NEAH and Mr. Miller reaffirm their recommendation that Dynegy, Inc shareholders reject the Blackstone Group Bid.

NEAH and Mr. Miller firmly believe that the Blackstone Group bid is not sufficient. NEAH and Mr. Miller note that proxy advisory firms usually advise shareholders whether to vote for an incumbent board and management team or a proposed new slate of directors proposed by dissenting investors regarding "going concern" business plans.

When it comes to evaluating and making recommendations to shareholders regarding liquidation of a sizable energy company like Dynegy Inc., NEAH and Mr. Miller believe independent industry experts who understand the complexities of such matters provide the credibility to base critical decisions.

In NEAH and Mr. Miller's opinion, traditional proxy solicitation firms are "outside the scope" of their expertise and subject matter, specifically the natural gas market, carbon emissions regulations, debt capital market matters, and most importantly future "new management and board members" who have yet to be announced per Seneca public filings.

NEAH and Mr. Miller have previously expressed their opinion that should Dynegy shareholders vote down the proposed acquisition by Blackstone Group, Seneca, on shareholders behalf should also promptly move to restructure the Company Board and Management team by filing draft shareholder consents no later than forty eight (48) hours following the shareholder vote on November 17, 2010 to protect the integrity of the Company operations and employees, lay out an aggressive debt restructuring program in a timely fashion, implement an execution orientated growth plan, which includes attracting new capital to the Company to support earnings accretive transactions and become an aggressive growth company. Now is the time to be a buyer in the U.S. Energy Market.

NEAH and Mr. Miller have previously expressed their opinion that Seneca grasps the critical timing involved in nominating new Directors. As NEAH and Mr. Miller have previously advised, they have no interest in participating in the "Status Quo" should shareholders veto the proposed acquisition by Blackstone Group. Nor do NEAH and Mr. Miller have any interest in a liquidation transaction. They are only interested in a growth plan for Dynegy Inc.

Mr. Miller has previously posted a presentation entitled "Building an Earnings Accretive Energy Business" for public interest and as a guideline to consider in turning Dynegy, Inc. around and may be reviewed at the following link: http://slidesha.re/8Yw66E

Disclaimer: No capital or shareholder agreements or other arrangements are in place, and Mr. Miller and NEAH 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. Mr. Miller has provided guidance in open disclosure to all parties of his personal opinion that Dynegy, Inc. shareholders have credible alternatives to build an earnings accretive energy company.

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