In recent filings made to the court, PG&E Corporation (PCG) said that it has a $34.35 billion debt financing commitment. The company is eyeing a Chapter 11 bankruptcy reorganization. Note that the company’s noteholders have proposed a separate reorganization plan.
PG&E reveals details
The California-based power producer filed the details of its debt financing commitments in a San Francisco US Bankruptcy court. It said that the commitments are mostly from leading money center banks. According to the company, these banks have superior terms compared to the noteholders. The company said that its commitments could easily fund the reorganization plan in full. If it follows through with its plans, the reorganization should be completed by June 30, 2020.
The company has managed to get another $14 billion in equity commitments from various investors. It has received a $1 billion settlement with a group of public entities and local governments that were hit hard because of the California wildfires. The fires led to the company’s bankruptcy claims. Apart from this, it has agreed on an $11 billion settlement with a group of insurers.
Making new strides in business
The wildfires in California in 2017 and 2018 were blamed on faulty equipment by PG&E, which eventually led to its downfall. It reportedly anticipated liabilities of over $30 billion related to the fires. The company filed for Chapter 11 bankruptcy protection in January this year.
The company’s noteholders, which include Elliott Management Corp and Apollo Capital Management, proposed a reorganization plan earlier but recently made some changes to it. According to this plan, the company will get $29.2 billion of new money.
Previously, they were offering only $28.4 billion. The company would give away new debt as well as a controlling stake in its equity to the noteholders. It would also create a $14.5 billion trust that would pay for the claims of individual wildfire victims. Therefore, the committee charged with representing these victims is also supporting the noteholders’ proposal.
PG&E, on the other hand, wants to create trust with no more than $8.4 billion to find the claims made by wildfire victims. Now, US Bankruptcy Judge Dennis Montali will preside over a Monday hearing, that will allow the noteholders’ plan to be filed. PG&E has objected to this proposal and suggests that it should be the sole party with a reorganization plan for the company. It added that debt holders would be paid in full by the company.
Trusted & Regulated Stock & CFD Brokers
What we like
- 0% Fees on Stocks
- 5000+ Stocks, ETFs and other Markets
- Accepts Paypal Deposits
Min Deposit
$200
Charge per Trade
Zero Commission on real stocks
64 traders signed up today
Visit Now67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Available Assets
- Total Number of Stocks & Shares5000+
- US Stocks
- German Stocks
- UK Stocks
- European
- ETF Stocks
- IPO
- Funds
- Bonds
- Options
- Futures
- CFDs
- Crypto
Charge per Trade
- FTSE 100 Zero Commission
- NASDAQ Zero Commission
- DAX Zero Commission
- Facebook Zero Commission
- Alphabet Zero Commission
- Tesla Zero Commission
- Apple Zero Commission
- Microsoft Zero Commission
Deposit Method
- Wire Transfer
- Credit Cards
- Bank Account
- Paypall
- Skrill
- Neteller
What we like
- Sign up today and get $5 free
- Fractals Available
- Paypal Available
Min Deposit
$0
Charge per Trade
$1 to $9 PCM
Visit Now
Investing in financial markets carries risk, you have the potential to lose your total investment.
Available Assets
- Total Number of Shares999
- US Stocks
- German Stocks
- UK Stocks
- European Stocks
- EFTs
- IPOs
- Funds
- Bonds
- Options
- Futures
- CFDs
- Crypto
Charge per Trade
- FTSE 100 $1 - $9 per month
- NASDAQ $1 - $9 per month
- DAX $1 - $9 per month
- Facebook $1 - $9 per month
- Alphabet $1 - $9 per month
- Telsa $1 - $9 per month
- Apple $1 - $9 per month
- Microsoft $1 - $9 per month
Deposit Method
- Wire Transfer
- Credit Cards
- Bank Account
Share
