hill with power line tower and brushes on fire

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.

Author:
Energy Pages is an online trade publication and business directory for the retail energy industry. We publish editorials, resources, case studies, practical information and industry news. Our content is about and for industry leaders, innovators, investors and influencers.

Your Opinion Matters

Have Something To Say About This Story?

Sign Up for the Energy Pages Digest

Our weekly must-see brief

You May Also Like

Future U.S. Electricity Generation Mix Will Depend Largely on Natural Gas Prices

In 2018, natural gas accounted for 34% of total electricity generation, and EIA projects its share to grow to 40% by 2032

Great Eastern Energy Files For Bankruptcy

Prior to the bankruptcy filings, the debtors were in default under the Prepetition Credit Agreement and the ISDA Agreement.

Big Apple, Clear Choice Bankruptcy: No Way Out

An expert’s assessment of the reorganization of a wholesale energy supply company under Chapter 11 of the United States Bankruptcy Code