PG&E noteholders raise concerns about six-month exclusivity extension

By Caroline Salls

Pittsburgh, May 15 – An informal committee of PG&E Corp. senior unsecured noteholders raised concerns Wednesday about the length of the company’s proposed extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to a filing with the U.S. Bankruptcy Court for the Northern District of California.

The noteholder group said it “does not at this time object to the relief requested in the exclusivity motion and is hopeful that the debtors will propose a confirmable plan of reorganization in the near future.”

However, the noteholders said it wanted to register its concerns about the six-month length of the extension sought and reserve its right to file a motion to shorten or terminate PG&E’s exclusive periods at a later date, if necessary.

“The ad hoc committee is aware of the many legal and operational issues the debtors must contend with during these Chapter 11 cases,” the noteholders said in Wednesday’s filing. “However, to date, the debtors have not, as far as the ad hoc committee is aware, engaged in any substantive plan-related discussions with any of their primary stakeholders.”

The committee said it is concerned that a process initiated by PG&E’s major shareholders to replace the company’s board of directors hampered the progress of its Chapter 11 cases.

The noteholders said they believe that the company and all key parties in interest should focus their efforts on building consensus on a confirmable Chapter 11 plan and exiting bankruptcy as soon as possible, and “a lengthy extension should not deter parties in interest from working quickly to reach a global resolution” of plan and wildfire mitigation issues.

A hearing is scheduled for May 22.

The electric and natural-gas utility is based in San Francisco. The company filed bankruptcy on Jan. 29 under Chapter 11 case number 19-30088.

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