Is A New Name Coming? Lenders Propose $30 Billion Restructuring Plan For PG&E

Following the announcement of its Chapter 11 bankruptcy filing in January, PG&E’s (PCG) lenders have offered up a $30 billion plan to help the utility restructure while also giving the company a new name to improve its reputation.

Under the proposed plan, $18 billion would be dedicated to paying for PG&E’s liabilities with the 2017 and 2018 wildfires caused by its equipment, the Sacramento Bee reported. The lenders are proposing the plan ahead of PG&E because they said in their court filing that the utility has “wasted crucial time needlessly,” the news outlet said. PG&E has yet to file its drafted plan.

The lenders also have a plan in place that would allow PG&E to now operated under the name Golden State Power Light & Gas Company, KFSN, an ABC affiliate in Fresno reported. Lenders told the news outlet in a statement that they were considering all options as they move through the bankruptcy process.

The lenders have been working with Gov. Gavin Newsom and other legislators to come to a proposed plan that would allow PG&E to restructure in the best possible manner, KFSN said. Lenders include investors such as Elliott Management, Pimco, and Apollo Global Management.

The lenders’ plan would be “ratepayer neutral,” allowing rates to remain the same despite the costs incurred by PG&E to move out of bankruptcy. Ratepayers, however, would be charged $2.50 a month for a wildfire insurance fund, which Newsom proposed last week. This fund would be designed to help pay for any future wildfire claims.

In a statement, PG&E said, it is "committed to working together with our stakeholders through the Chapter 11 process to fairly and expeditiously resolve our liabilities resulting from the 2017 and 2018 Northern California wildfires, develop a more sustainable business model, and continue delivering safe and reliable service. We can assure our customers and communities that we are looking at all options when it comes to working with the Governor and all stakeholders.”

Shares of PG&E stock were up 1.06 percent as of 3:00 p.m. ET on Wednesday.