After last week’s announcement of plans to file a Chapter 11 bankruptcy on January 29 due to the alleged inability to afford the potential $30 billion in damages caused by the 2017 and 2018 California wildfires, Pacific Gas & Electric Co. announced on Tuesday that it has lined up $5.5 billion in credit and loans to continue operating through the bankruptcy procedures which are expected to last about two years. The debtor-in-possession (DIP) financing would be provided by Bank of America Corp., Barclays PLC, Citigroup Inc., and J.P. Morgan Chase & Co.
In the filing with the Securities and Exchange Commission, the energy company has stated that this process, among other things, is “the only viable option to restore PG&E’s financial stability to fund ongoing operations and provide safe service to customers”.
PG&E’s intention to file for bankruptcy has met with criticism from various parties, including Hollywood-famed consumer activist Erin Brockovich, who is part of the legal team representing victims of the 2017 fires. Brockovich is famous for being instrumental in building another case against PG&E in 1993, which was the subject of a 2000 film starring Julia Roberts.
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