San Francisco Seeks To Take Over PG&E Assets For $2.5 Billion
September 10,2019
The City of San Francisco has presented to Pacific Gas & Electric an offer to take over PG&E's electric distribution assets and related infrastructure in the city for $2.5 billion, the San Francisco Chronicle reports
San Francisco sought for the transaction to be considered in PG&E’s bankruptcy case
PG&E said in a statement that it does not believe that municipalization is in the best interests of its customers and stakeholders
PG&E Corporation and Pacific Gas and Electric Company (together “PG&E”) on September 9 filed a joint Chapter 11 Plan of Reorganization (the “Plan”) in the United States Bankruptcy Court for the Northern District of California (the “Bankruptcy Court”).
PG&E’s Chapter 11 emergence financing is expected to include a substantial equity financing component, which could include a rights offering to existing shareholders or one or more offerings in the capital markets. PG&E intends to work with financial institutions over the next several weeks to obtain up to $14 billion of total equity financing commitments. All proceeds of the equity commitments will be used to pay wildfire victims and help fund PG&E’s contributions to the state wildfire fund.