PG&E Prepares to Initiate Voluntary Reorganization Cases Under Chapter 11 Of Bankruptcy Code
CEO Departs PG&E Corp., Interim CEO Named
January 14, 2019 Email This Story Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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PG&E Corporation (the "Company") said that it is preparing to initiate voluntary reorganization proceedings under Chapter 11.
The Company today provided the 15-day advance notice required by recently enacted California law that it and its wholly owned subsidiary Pacific Gas and Electric Company (the "Utility") currently intend to file petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code on or about January 29, 2019.
"During this process, the Company is also committed to continuing to make investments in system safety as it works with regulators, policymakers and other key stakeholders to consider a range of alternatives to provide for the safe delivery of natural gas and electric service for the long-term in an environment that continues to be challenged by climate change. PG&E expects that the Chapter 11 process will, among other things, support the orderly, fair and expeditious resolution of its potential liabilities resulting from the 2017 and 2018 Northern California wildfires, and will assure the Company has access to the capital and resources it needs to continue to provide safe service to customers," the Company said
Richard C. Kelly, Chair of the Board of Directors of PG&E Corporation, said, "The Chapter 11 process allows us to work with these many constituents in one court-supervised forum to comprehensively address our potential liabilities and to implement appropriate changes."
The Company expects that the Chapter 11 process will, among other things:
• Support the orderly, fair and expeditious resolution of PG&E’s potential liabilities resulting from the 2017 and 2018 Northern California wildfires;
• Enable PG&E to continue its extensive restoration and rebuilding efforts to assist communities affected by the 2017 and 2018 wildfires in Northern California;
• Allow the Company to work with regulators and policymakers to determine the most effective way for customers to receive safe natural gas and electric service for the long-term in an environment that continues to be challenged by climate change; and
PG&E has engaged in discussions with potential lenders with respect to Debtor-in-Possession ("DIP") financing. PG&E expects to have approximately $5.5 billion of committed DIP financing at the time it files for relief under Chapter 11 on or about January 29, 2019, and the Company said that it, "has received highly confident letters from a number of major banks."
"The DIP financing will provide PG&E with sufficient liquidity to fund the Company’s ongoing operations, including its ability to provide safe service to customers," the Company said
PG&E Corporation also announced that its Board of Directors is conducting a search for a new Chief Executive Officer following the departure of Geisha Williams. The Board of Directors named John Simon Interim Chief Executive Officer. M Simon has served as Executive Vice President and General Counsel since 2017 and has been with the company since 2007.