PG&E talking to banks on multibillion dollar bankruptcy financing - sources

[Eugene]

Source: Reuters

BUSINESS NEWS JANUARY 13, 2019 / 1:15 PM / UPDATED 2 HOURS AGO

Exclusive: PG&E talking to banks on multibillion dollar bankruptcy financing - sources

Mike Spector, Liana B. Baker
3 MIN READ

(Reuters) - PG&E Corp (PCG.N) is in discussions with investment banks about a multibillion-dollar financing package to help navigate bankruptcy proceedings, a sign that Chapter 11 filing preparations are intensifying in the wake of potentially staggering liabilities from deadly wildfires, sources said on Sunday.

The California utility owner is in touch with large banks about so-called debtor-in-possession financing that could total between $3 billion and $5 billion, though the exact figure remains in flux and could end up being higher, said the sources, who are familiar with the matter.

PG&E Corp declined to comment.

The company may alert employees as soon as Monday about its preparations for a potential bankruptcy filing in compliance with a state law about providing notice at least 15 days before such an event, one of the people said.

The plans have not been finalized and the communication could come later, the source said. Bloomberg first reported that the notice could come as soon as Monday.

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Read more: https://www.reuters.com/article/us-pg-e-us-bankruptcy-exclusive/exclusive-pge-talking-to-banks-on-multibillion-dollar-bankruptcy-financing-sources-idUSKCN1P70PY

[Turbineguy]

1. This could have a major effect on the California economy.

People want the lights to come on when they flip the switch. A lot goes into that.

Somebody needs to figure out how to make that happen.

[Nictuku]

2. So what happens if they go bankrupt?

PG&E is my electricity source.

I was evacuated due to a fire last year, the Atlas fire, I'm not sure if PG&E might be responsible for, so I'm affected in this way too.

So what happens if they go bankrupt?

Will another company buy it? How will they be able to get insurance?

We need a massive investment in our electric grid. Put the lines underground, change it over to renewable.

Sounds like we really need a Green New Deal.