US utility Pacific Gas and Electric Company (PG&E) has presented its final plan of reorganisation following operating in a slump over the past years.
In addition to finalising its plan, the utility has secured commitments of up to $34.5 billion in debt financing from financial institutions to fund the plan.
In addition to the $34.5 billion in debt financing secured, the utility has also received equity commitments $14 billion to support the plan and utility’s operations.
The utility claims the plan protects its customers, satisfies wildfire claims and treats all stakeholders fairly.
PG&E’s Plan would accomplish the following:
- Compensate wildfire victims and certain limited public entities from a trust funded for their benefit in an amount to be determined in an estimation proceeding not to exceed $8.4 billion;
- Compensate insurance subrogation claimants from a trust funded for their benefit in the amount of $11 billion in accordance with the terms of the Subrogation Claims Settlement and Restructuring Support Agreement, to be approved by the Bankruptcy Court;
- Pay $1 billion in full settlement of the claims of certain public entities like cities and counties relating to the wildfires, as previously announced;
- Pay in full, with interest at the legally allowable rate, all prepetition funded debt obligations, all prepetition trade claims and all employee-related claims;
- Assume all power purchase agreements and community choice aggregation servicing agreements;
- Assume all pension obligations, other employee obligations, and collective bargaining agreements with labour;
- Provide for PG&E’s future participation in the state wildfire fund established by Assembly Bill 1054;
- Satisfy the requirements of Assembly Bill 1054
- Participation in the state’s new go-forward wildfire fund established under Assembly Bill 1054.
The plan is available here.