PG&E Corp. bondholders and wildfire victims filed a joint Chapter 11 plan of reorganization with the U.S. Bankruptcy Court in San Francisco on Oct. 17.
A bankruptcy judge had decided to terminate PG&E Corp.'s exclusive right to plan its reorganization, allowing this alternative plan to proceed.
The alternative plan will effectively give the unsecured noteholders and wildfire victim ownership of new PG&E Corp. shares. The bondholder group, which includes Elliott Management Corp., Deutsche Bank Securities Inc., Oaktree Capital Management LP and Pacific Investment Management Co. LLC, will buy $15.51 billion of new shares, representing 59.3% of equity. Another $12.75 billion of shares, representing 40.6%, will be issued to a fire victim trust.
Earlier in the day, PG&E Corp. and utility subsidiary Pacific Gas and Electric Co. reiterated their commitment to their own reorganization plan, saying it is the best solution for all constituencies. They recently secured $34.35 billion in bridge financing commitments from a group of lenders.