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#209 INTERIM ORDER AUTHORIZING DEBTORS TO (A)CONTINUE THEIR EXISTING CASH MANAGEMENT SYSTEM, (B) HONOR CERTAIN PREPETITION OBLIGATIONS RELATED TO THE USE THEREOF, (C) CONTINUE INTERCOMPANY ARRANGEMENTS, (D) CONTINUE TO HONOR OBLIGATIONS RELATED TO JOINT INFRASTRUCTURE PROJECTS, AND (E) MAINTAIN EXISTING BANK ACCOUNTS AND BUSINESS FORMS; AND (II) WAIVING THE REQUIREMENTS OF 11 U.S.C. § 345(b)
ECF#210 INTERIM ORDER AUTHORIZING DEBTORS TO (I) PAY PREPETITION WAGES, SALARIES, WITHHOLDING OBLIGATIONS AND OTHER COMPENSATION AND BENEFITS; (II) MAINTAIN EMPLOYEE WAGE AND BENEFITS PROGRAMS; AND (III) PAY RELATED ADMINISTRATIVE OBLIGATIONS
ECF#211 INTERIM ORDER AUTHORIZING THE DEBTORS TO (A) MAINTAIN INSURANCE POLICIES, WORKERS’ COMPENSATION PROGRAM, AND SURETY BOND PROGRAM AND (B) PAY ALL OBLIGATIONS WITH RESPECT THERETO; AND (II) GRANTING RELIEF FROM THE AUTOMATIC STAY WITH RESPECT TO WORKERS’ COMPENSATION CLAIMS
ECF#215 INTERIM ORDER AUTHORIZING DEBTORS TO (A) HONOR PREPETITION OBLIGATIONS TO NATURAL GAS AND ELECTRICITY EXCHANGE OPERATORS, (B) GRANT ADMINISTRATIVE EXPENSE CLAIMS AND AUTHORIZE POSTING OF COLLATERAL TO EXCHANGE OPERATORS, TRADING COUNTERPARTIES, AND FUTURE COMMISSION MERCHANTS, (C) MODIFY THE AUTOMATIC STAY, AND (D) GRANT RELATED RELIEF
ECF#216 INTERIM ORDER AUTHORIZING DEBTORS TO (A) MAINTAIN AND ADMINISTER CUSTOMER PROGRAMS, INCLUDING PUBLIC PURPOSE PROGRAMS, AND (B) HONOR ANY PREPETITION OBLIGATIONS RELATING THERETO; AND (II) AUTHORIZING FINANCIAL INSTITUTIONS TO HONOR AND PROCESS RELATED CHECKS AND TRANSFERS
ECF#217 INTERIM ORDER AUTHORIZING DEBTORS TO (I) OBTAIN SENIOR SECURED, SUPERPRIORITY, POSTPETITION FINANCING, (II) GRANTING LIENS AND SUPERPRIORITY CLAIMS, (III) MODIFYING THE AUTOMATIC STAY, (IV) SCHEDULING FINAL HEARING, AND (V) GRANTING RELATED RELIEF