Natural Gas and Electric Service Expected to Continue Without
Disruption
Obtains Interim Approval to Access up to $1.5 Billion in DIP Financing
SAN FRANCISCO--(BUSINESS WIRE)--
PG&E Corporation (NYSE: PCG) and its primary operating subsidiary,
Pacific Gas and Electric Company (the “Utility”), today announced that
they have received interim approvals from the U.S. Bankruptcy Court for
the Northern District of California for the “First Day” motions related
to the voluntary Chapter 11 reorganization cases they initiated on
January 29, 2019.
Among other things, the approved motions provide PG&E with:
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Access to financing to support its operations and ongoing safety
initiatives, as well as its critical investments in system safety and
maintenance;
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The authority to continue existing customer programs, including low
income support, energy efficiency and other programs supporting
customer adoption of clean energy, and;
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The ability to continue paying employee wages and providing healthcare
and other benefits.
John R. Simon, PG&E Corporation Interim CEO, said, “The Court’s approval
of these motions is a positive step forward that will enable PG&E to
continue providing safe and reliable natural gas and electric service to
our millions of customers. In addition, with access to new financing, we
have the necessary capital to continue investing in system safety and
ensure essential maintenance as we move through this process. We 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 – this is our goal. For all
24,000 of us at PG&E, safety will remain our most important
responsibility.”
At the hearing, the Court granted PG&E interim approval to access up to
$1.5 billion of its $5.5 billion in debtor-in-possession financing,
which will be available to ensure essential maintenance and continued
investments in safety and reliability.
PG&E will pay suppliers in full under normal terms for goods and
services provided after the filing date of January 29, 2019.
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 http://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