all the debt was held by its subsidiary, Dynegy Holdings, which also guaranteed debt for the operating divisions. Dynegy Inc. created three operating divisions: the natural gas group (GasCo), the coal group (CoalCo), and a group for all other businesses (known as "the stub group"). GasCo and CoalCo were structured so that they would be little affected by any bankruptcy filing by either Dynegy Inc. or Dynegy Holdings. Part of the structure meant that few of the natural GasCo's and CoalCo's dividends were given to Dynegy Holdings. To separate Dynegy Holdings from Dynegy Inc., Dynegy Holdings was transformed from a corporation into a limited liability company (LLC). This legal maneuver took advantage of a Delaware Supreme Court ruling which made it difficult for creditors to sue an LLC's board of directors for failing to uphold their fiduciary duty. Finally, GasCo and CoalCo sold themselves to Dynegy Inc., which left Dynegy Holdings holding US$1.25 billion in debt but without the ability to seize the assets of GasCo and CoalCo in the event of a default. Under the structure adopted by Dynegy Inc., the company could meet its debt obligations to Dynegy Holdings by paying cash or by forgiving debt. This provided an incentive for Dynegy Inc. to withhold payment and force Dynegy Holdings to declare bankruptcy (thereby reducing the value of the debt and making it easier to pay off). The restructuring plan put Dynegy's assets which had the worst financial performance into the hands of Dynegy Holdings. The goal was to protect Dynegy's secured creditors at the expense of its unsecured creditors. The plan had already generated one lawsuit. In 2011, U.S. Bancorp, representing bondholders whose investment was secured by leases of two Dynegy power plants new Newburgh, New York (the Danskammer Generating Station and the Roseton Generating Station). On March 8, 2011, Dynegy submitted financial filings with government regulators warning investors that it faced bankruptcy if it could not restructure its debt. The company announced a month later that it had hired the restructuring firm Lazard and the law firm White & Case to advise it on debt restructuring. Vincent Intrieri was named chair of the boards finance and restructuring committee. On March 9, 2012, the November 2011 bankruptcy of Dynegy Holdings ran into difficulty. An examiner appointed by the United States bankruptcy court found that the Dynegy Inc.'s purchase of CoalCo was fraudulent. The examiner found that Dynegy