PG&E unsecured noteholders ask court to vacate restructuring orders

By Caroline Salls

Pittsburgh, Jan. 2 – An informal committee of PG&E Corp. senior unsecured noteholders is asking the U.S. Bankruptcy Court for the Northern District of California to reconsider and vacate orders approving the company’s restructuring support agreements, according to a motion filed Tuesday.

The committee said new developments that were not known by the court when it approved two restructuring support agreements demonstrate that a competitive Chapter 11 plan process “is continuing to unfold.”

Specifically, the committee said it announced on Dec. 20 that its proposed plan would pay wildfire victims $13.5 billion in cash up front.

“The AHC plan thus directly addresses a major shortcoming in the debtors’ payment of such claims: wildfire victims will be forced to take stock in the very company that caused their devastating losses,” the motion said.

In addition, the committee said its plan “provides significantly greater certainty and value, as more than $1 billion of the $6.75 billion to be paid in cash under PG&E’s plan will be paid to wildfire victims over the course of the next two years, “if and when the debtors generate additional funds from [net operating losses].”

However, the noteholder group said the restructuring support agreements include anti-competition provisions that prevent key constituencies from voting for, or even negotiating with, the committee regarding a plan.

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

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