PG&E Says Market Turmoil Increasing Pressure on Bankruptcy Plan

PG&E Corp. said increased instability in financial markets due to the coronavirus pandemic has created “increased pressures” on the company’s reorganization plan, according to a state regulatory filing.

• Equity backstop and bridge loan commitments provide assurance that the company can raise capital to exit Chapter 11, but those commitments rely on the absence of “material adverse events,” PG&E says in filing with the California Public Utilities Commission
• Financing commitments could be jeopardized if the commission imposes “onerous conditions” for approval of its plan, PG&E says
• NOTE: PG&E needs CPUC to approve its restructuring plan before a state-mandated June 30 deadline

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Hari Govind

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