PG&E Corp. has contacted major banks about financing that could help it work through a potential bankruptcy filing, Reuters reported Jan. 13 citing sources familiar with the matter.
According to the newswire's sources, the California utility company is in discussions with banks for debtor-in-possession financing that could total between $3 billion and $5 billion, though the actual amount remains uncertain. The talks are still in the early stages and are part of the company's contingency planning, Reuters said.
The company could inform its employees about a potential bankruptcy filing as soon as Jan. 14, according to one of Reuters' sources. Under California state law, companies must notify their staff of a planned bankruptcy at least 15 days prior to filing.
The report follows speculation that PG&E Corp. could seek Chapter 11 bankruptcy protection as it faces billions of dollars in possible liabilities stemming from catastrophic wildfires in the state. Both Moody's and S&P Global Ratings recently downgraded the credit ratings of the company and utility subsidiary Pacific Gas and Electric Co. to junk status.