Here’s How PG&E Restructured Its Debt in 2001

If the past is any indication of the future, let’s recap how PG&E Corp.’s utility fell into bankruptcy once before and then climbed out, with a little help from the state and ratepayers. The short version for bondholders is that they made out okay, but it took three years.

• Pacific Gas & Electric became the biggest utility to go bust in April 2001, after running up about $9 billion in debt by buying power for more than it could charge customers under California’s electricity deregulation.
• The utility exited bankruptcy in April 2004 with a plan that made creditors whole, restored ...