SACRAMENTO, Calif.--(BUSINESS WIRE)--Today, the Official Committee of Tort Claimants (the “TCC”) and the Ad Hoc Committee of Senior Unsecured Noteholders of Pacific Gas and Electric Company (the “Ad Hoc Committee”) announced an agreement that would provide $24 billion to resolve all claims against PG&E related to prepetition fires.
Under the terms of the agreement, a newly created Fire Claims Trust (the “Trust”) would be funded using $12 billion of cash and $12 billion of equity in the reorganized PG&E Corp. (“new PG&E” or the “Company”). This split would give the Trust ownership of approximately 40% of new PG&E upon its emergence from bankruptcy.
Robert Julian, counsel to the TCC, commented that “the proposal presents a path forward that recognizes the victims’ losses and puts their interests ahead of shareholders.”
In addition, the agreement clears the way for the PG&E bankruptcy to be resolved in advance of the June 2020 deadline it must meet to qualify for California’s new go-forward wildfire fund. To facilitate PG&E’s emergence from bankruptcy, the establishment of the Trust, and the timely payment of victims’ claims, the TCC and the Ad Hoc Committee today filed a joint motion to terminate PG&E’s exclusive right to file and solicit acceptances of a plan of reorganization. The filing includes a proposed Term Sheet for Plan of Reorganization that memorializes the agreement and outlines the creation of the Trust.