The “first day motions” were argued in bankruptcy court and ruled on. The two that are most important to us are in the first bullet and we prevailed on both. Our bankruptcy counsel was in court all day involved with the motions.
- Most importantly, the cash management and wage and benefits motions were granted on an interim basis. This approves the normal payment processes and use of payroll accounts and other related benefits accounts pending the final hearing.
- PG&E was approved for their DIP loan on an interim basis. This gives them immediate access to $1.5B in credit, which will also help them maintain normal operations, payroll, and benefits.
- The wildfire victim plaintiffs’ lawyers spent quite a bit of time arguing. Some took the position that no one should be paid until victims are paid, but the judge respectfully overruled them. Others indicated a desire to have a very quick claims process implemented to allow access to funds for victims.
- With respect to the future of the case, PG&E’s counsel indicated they plan to set up a fire victim claim fund (which would be similar to Takata). They were not specific about how they plan to free up money for that fund, but the general speculation seems to be that they will focus on their Power Purchase Agreements..
- A number of parties are calling for the creation of other creditor committees. There have apparently been requests for a municipality committee, a fire victims committee, and an equity committee.It will be sometime next week before we hear the US Trustee’s position on whether they intend to support formation of those committees. The creditor committees vote on the eventual plan for reorganization. We have expressed our interest in being on the creditor’s committee.
The STIP Issue, which only affects about 15 Local 1245 members, was not decided today. It has taken a lot of heat because it is seen as a bonus, not at-risk pay.
View the interim orders:
ECF#207 Order Directing Joint Administration of Chapter 11 Cases