The PSEG subsidiaries are owner-lessors of the Danskammer and Roseton power generating facilities.
The lessees are indirect subsidiaries of Dynegy Inc and DHI, and DHI has guaranteed to the PSEG entities the obligations of the lessees under the leases.
The PSEG entities, as of 31 March 2011, had a gross equity investment at risk in the Roseton and Danskammer leases of $270m.
Earlier this month, DHI unveiled its plan to transfer certain of its coal and natural gas power assets to bankruptcy remote entities, while transferring its Roseton and Danskammer power 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 therefore seek a temporary restraining order and permanent injunction preventing DHI from consummating these proposed transfers.
