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PG&E Declares Bankruptcy And CEO Resigns

According to PG&E, the company intends to file petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code on or about January 29, 2019.

Posted: Jan 14, 2019 7:45 AM
Updated: Jan 14, 2019 11:03 AM

Updated Monday, Jan. 14, 2018 - PG&E has declared bankruptcy.

According to PG&E, the company intends to file petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code on or about January 29, 2019.

The company has engaged in discussions with potential lenders with respect to Debtor-in-Possession ("DIP") financing. The DIP financing will provide PG&E with funding so that the company can continue to operate and serve customers.

PG&E stated that they do "not expect any impact to electric or natural gas service for its customers as a result of the Chapter 11 process." It also stated that its employees will continue to receive their pay and health care benefits as usual.

In the press release sent out regarding the bankruptcy, PG&E also stated that it "remains committed to assisting the communities affected by wildfires in Northern California, and its restoration and rebuilding efforts will continue."

California Governor Gavin Newsom responded to the announcement, saying: "While PG&E announced its intent to file bankruptcy today, the company should continue to honor promises made to energy suppliers and to our community. Throughout the months ahead, I will be working with the Legislature and all stakeholders on a solution that ensures consumers have access to safe, affordable and reliable service, fire victims are treated fairly, and California can continue to make progress toward our climate goals."

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Updated Sunday, Jan. 13, 2019 - Action News Now asked PG&E officials for comment on the Associated Press article below. They told us they do not comment on "market rumors or speculation."

PG&E issued a press release Sunday about changes in their leadership structure, naming John Simon as the Interim Chief Executive Officer. He is replacing former CEO Geisha Williams, who resigned from both the holding company and the utility.

In the sidebar to this article we are including the entire press release issued Sunday, Jan. 13, 2019 by PG&E.

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SAN FRANCISCO, Calif. - (AP) - A newspaper says employees of Pacific Gas and Electric could learn this week if the utility will declare insolvency while facing billions of dollars in liability over its role in recent California wildfires.

The San Francisco Chronicle reports Sunday that under a new state law, PG&E must tell its employees at least 15 days before a change of control in the company - including a bankruptcy filing.

That notice may come as soon as Monday. The news was first reported by Bloomberg.

PG&E is in discussions with lenders about a financing package worth up to $5 billion. It would allow the company to continue operating during Chapter 11 bankruptcy proceedings.

State fire investigators blamed the utility's power lines for causing a number of California wildfires in October 2017.

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