PG&E secures $5.5B in credit to operate during bankruptcy
NEW YORK (AP) — The nation’s largest utility has lined up $5.5 billion in credit and loans so it can continue operating as it prepares for bankruptcy.
Pacific Gas & Electric said in a regulatory filing Tuesday it secured commitments from JPMorgan Chase, Bank of America, Barclay’s Bank and Citigroup Global Markets.
Without the new financing, the utility could have problems accessing capital. PG&E’s stock lost more than 80 percent of its value in the last two months and S&P slashed its credit rating to junk status after California’s deadly wildfires.
Under the proposal, the new creditors would be given a high priority for repayment in bankruptcy proceedings.
Barry Adler, a professor at New York University, says the new financing could help increase the size of the pie to be divided among creditors.