PG&E filed reorganization plan, $17.9 billion for wildfire claimsChristian Fernsby ▼ | September 10, 2019
PG&E Corporation and Pacific Gas and Electric Company filed a joint Chapter 11 Plan of Reorganization in the United States Bankruptcy Court for the Northern District of California.
America Pacific Gas and Electric Company
Topics: Pacific gas electric Chapter 11
The plan proposes a rate-neutral framework that fairly compensates wildfire victims and other stakeholders, prioritizes the interests of our customers and communities, and meets PG&E's legal obligations.
It is comprised of, among other things, the following:
Compensation of wildfire victims and certain limited public entities from a trust funded for their benefit in an amount to be determined by the Bankruptcy Court not to exceed $8.4 billion;
Compensation of insurance subrogation claimants from a trust funded for their benefit in an amount to be determined by the Bankruptcy Court not to exceed $8.5 billion;
Payment of $1 billion in full settlement of the claims of certain public entities relating to the wildfires, as previously announced;
Payment in full, with interest, of all prepetition funded debt obligations, all prepetition trade claims and employee-related claims;
Assumption of all power purchase agreements and community choice aggregation servicing agreements;
Assumption of all pension obligations, other employee obligations, and collective bargaining agreements with labor;
Future participation in the state wildfire fund established by Assembly Bill 1054; and
Satisfaction of the requirements of Assembly Bill 1054.
PG&E's Chapter 11 emergence financing is expected to include a substantial equity financing component, which could include a rights offering to existing shareholders or one or more offerings in the capital markets.
PG&E intends to work with financial institutions over the next several weeks to obtain up to $14 billion of total equity financing commitments.
All proceeds of the equity commitments will be used to pay wildfire victims and help fund PG&E's contributions to the state wildfire fund. ■