PG&E restructuring support deal approval deadline extended to Nov. 20

By Caroline Salls

Pittsburgh, Oct. 31 – PG&E Corp.’s backstop commitment letters have been amended to extend the restructuring support agreement approval deadline to Nov. 20 from Oct. 31, according to an 8-K filed Thursday with the Securities and Exchange Commission.

As previously reported, the company entered into Chapter 11 plan backstop commitment letters under which the backstop parties will fund up to $14 billion of proceeds to finance the proposed plan through the purchase of common stock of PG&E.

Under the backstop commitment letters, if the U.S. Bankruptcy Court for the Northern District of California does not approve the restructuring support agreement by the deadline, then a wildfire claims cap will be reduced to $17.9 billion, not counting wildfire-related claims that are approved by the California Public Utilities Commission for recovery or pass-through against the cap.

In addition, if the court does not approve the support agreement by the deadline, the plan must be amended to remove any provisions related to the agreement and to a settlement with insurance subrogation claimholders.

PG&E said the bankruptcy court is expected to hold a hearing on Nov. 13 to determine whether it will approve the restructuring support agreement.

The electric and natural gas utility is based in San Francisco. The company filed bankruptcy on Jan. 29, 2019 under Chapter 11 case number 19-30088.

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