PG&E Committed to Providing Safe and Reliable Energy, Aiding
Restoration and Rebuilding Efforts, and Working Together with Customers,
Regulators and Community Leaders to Address Wildfire Threat
Seeks Court Approval to Access $5.5 Billion in Debtor-in-Possession
Financing to Support Operations and Ongoing Safety Initiatives
SAN FRANCISCO--(BUSINESS WIRE)--
PG&E Corporation (NYSE: PCG) and its primary operating subsidiary,
Pacific Gas and Electric Company (the “Utility”), today filed voluntary
petitions under Chapter 11 of the U.S. Bankruptcy Code in the United
States Bankruptcy Court for the Northern District of California.
Throughout the forthcoming process, PG&E remains committed to:
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Delivering safe and reliable electric and natural gas service to
customers;
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Continuing to make critical investments in system safety and
maintenance;
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Supporting the orderly, fair and expeditious resolution of its
liabilities resulting from the 2017 and 2018 wildfires;
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Working with customers, civic leaders, regulators, policymakers, the
financial community and other key stakeholders to consider
alternatives to provide for the safe delivery of natural gas and
electricity and new safety solutions in an environment challenged by
climate change; and
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Assisting our customers and communities impacted by wildfires in
Northern California. PG&E’s restoration and rebuilding efforts will
continue.
“Our most important responsibility is and must be safety, and that
remains our focus. Throughout this process, we are fully committed to
enhancing our wildfire safety efforts, as well as helping restoration
and rebuilding efforts across the communities impacted by the
devastating Northern California wildfires. We also intend to work
together with our customers, employees and other stakeholders to create
a more sustainable foundation for the delivery of safe, reliable and
affordable service in the years ahead. To be clear, we have heard the
calls for change and we are determined to take action throughout this
process to build the energy system our customers want and deserve,” said
John R. Simon, PG&E Corporation Interim CEO.
In conjunction with the filings, PG&E also filed a motion seeking
interim and final approval of the Court to enter into an agreement for
$5.5 billion in debtor-in-possession (DIP) financing with J.P. Morgan,
Bank of America, Barclays, Citi, BNP Paribas, Credit Suisse, Goldman
Sachs, MUFG Union Bank and Wells Fargo acting as joint lead arrangers.
PG&E expects the Court to act on an interim basis on the DIP motion in
the coming days. The DIP financing, when approved, will provide PG&E
with necessary capital to ensure essential maintenance and continued
investments in safety and reliability for the expected duration of the
Chapter 11 cases.
“Through this process, we will prioritize what matters most to our
customers and the communities we serve – safety and reliability. We
believe that this process will make sure that we have sufficient
liquidity to serve our customers and support our operations and
obligations,” Mr. Simon said.
“I know that our 24,000 dedicated employees remain steadfastly focused
on delivering safe and reliable natural gas and electric service for the
16 million people across our service area,” said Mr. Simon. “Each day I
see the hard work and resilience of our team, and I thank them for their
continued dedication to working safely and delivering for our customers.”
As part of the filings, PG&E also filed various motions with the Court
in support of its reorganization, including requesting authorization to
continue paying employee wages and providing healthcare and other
benefits. In the filings, PG&E also asked for authority to continue
existing customer programs, including low income support, energy
efficiency and other programs supporting customer adoption of clean
energy. PG&E expects the Court to act on these requests in the coming
days. PG&E also intends to pay suppliers in full under normal terms for
goods and services provided on or after the filing date of January 29,
2019.
In order to help support the Company through the reorganization process,
PG&E has appointed James A. Mesterharm, a Managing Director at
AlixPartners, LLP (“AlixPartners”) and an authorized representative of
AP Services, LLC (“APS”), to serve as Chief Restructuring Officer. In
addition, PG&E appointed John Boken, also a Managing Director at
AlixPartners and an authorized representative of APS, to serve as Deputy
Chief Restructuring Officer. Mr. Mesterharm, Mr. Boken and their
colleagues at AlixPartners will continue to assist PG&E with the
reorganization process and related activities.
Tubbs Fire
On January 24, 2019, CAL FIRE released the results of its investigation
of the 2017 Tubbs Fire, which concluded that PG&E equipment did not
cause the fire. The comprehensive analysis underlying PG&E’s decision to
pursue reorganization under Chapter 11, conducted with the assistance of
independent legal and financial advisors, took into account PG&E’s
longstanding belief based on available evidence that its equipment did
not cause the Tubbs Fire. As such, PG&E continues to believe that the
Chapter 11 process will facilitate the orderly, fair and expeditious
resolution of the liabilities that have arisen and will continue to
arise in connection with the 2017 and 2018 Northern California wildfires.
Additional Resources
Additional resources for customers and other stakeholders, and other
information on PG&E’s filings, can be accessed by visiting PG&E’s
restructuring website at www.pge.com/reorganization.
Court filings and other documents related to the Chapter 11 process in
the U.S. are available on a separate website administered by PG&E’s
claims agent, Prime Clerk, at https://restructuring.primeclerk.com/pge.
Information is also available by calling 844-339-4217 (toll-free in the
U.S.) or 1-929-333-8977 (for parties outside the U.S.), as well as by
emailing pgeinfo@primeclerk.com.
Advisors
Weil, Gotshal & Manges LLP and Cravath, Swaine & Moore LLP are serving
as PG&E’s legal counsel, Lazard is serving as its investment banker and
AlixPartners, LLP is serving as the restructuring advisor to PG&E.
About PG&E Corporation
PG&E Corporation (NYSE: PCG) is a holding company headquartered in San
Francisco. It is the parent company of Pacific Gas and Electric Company,
an energy company that serves 16 million Californians across a
70,000-square-mile service area in Northern and Central California. Each
of PG&E Corporation and the Utility is a separate entity, with distinct
creditors and claimants, and is subject to separate laws, rules and
regulations. For more information, visit http://www.pgecorp.com.
In this press release, they are together referred to as "PG&E" or the
“Company.”
Cautionary Statement Concerning Forward-Looking Statements
This press release includes forward-looking statements that are not
historical facts, including statements about the beliefs, expectations,
estimates, future plans and strategies of PG&E Corporation and the
Utility. These statements are based on current expectations and
assumptions, which management believes are reasonable, and on
information currently available to management, but are necessarily
subject to various risks and uncertainties. In addition to the risk that
these assumptions prove to be inaccurate, factors that could cause
actual results to differ materially from those contemplated by the
forward-looking statements include factors disclosed in PG&E Corporation
and the Utility’s annual report on Form 10-K for the year ended December
31, 2017, their quarterly reports on Form 10-Q for the quarters ended
March 31, 2018, June 30, 2018, and September 30, 2018, and their
subsequent reports filed with the SEC. Additional factors include, but
are not limited to, those associated with the Chapter 11 cases, PG&E
Corporation and the Utility’s filing for relief under Chapter 11, and
the timing and outcome of the investigation into the cause of the 2018
Camp fire. PG&E Corporation and the Utility undertake no obligation to
publicly update or revise any forward-looking statements, whether due to
new information, future events or otherwise, except to the extent
required by law.
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Media Relations
415.973.5930
Source: PG&E Corporation