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Chapter 11 Update: Court Sets Schedule To Address Adequacy Of Disclosure Statement And Preemption Issues

12/04/2001

SAN FRANCISCO - At a status conference today, the U.S. Bankruptcy Court established the following schedule to determine the adequacy of Pacific Gas and Electric Company's disclosure statement and to address the preemption issues raised by the California Public Utilities Commission (CPUC) and several state agencies and departments:

December 19, 2001 - PG&E to file amended plan of reorganization and disclosure statement

January 8, 2002 - CPUC and state agencies to file briefs on preemption and sovereign immunity issues

January 14, 2002 - Hearing on the adequacy of disclosure statement (not including preemption and sovereign immunity issues)

January 22, 2002 - PG&E to file responses to briefs on preemption and sovereign immunity issues

January 25, 2002 - Oral arguments on preemption issues

The Court also denied a request by the CPUC, Attorney General, and other parties to initiate adversary proceedings.

The schedule allows the issues of preemption and sovereign immunity, which the CPUC and state officials were going to raise at some point, to be addressed at the beginning of the case, so that they can be resolved and allow the confirmation process to move forward.

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