Today Judge Dennis Montali of the United States Bankruptcy Court confirmed the PG&E Plan of Reorganization (POR). This is a major step in the bankruptcy process.
What this means to our membership is the POR is now approved by the court and the plan terms will be in effect as of the plan Effective Date. The plan Effective Date is determined by meeting certain criteria as defined in the POR (Article 9.2). Most of this criteria have already been met. Executing the financing is the only major condition left to fulfill. The terms of this financing have already been agreed to with execution contingent on POR confirmation. Now that the POR has been confirmed by the Bankruptcy Court, the financing agreements can be executed.
Bankruptcy counsel retained by 1245, as well as that of the Official Committee of Unsecured Creditors (of which IBEW 1245 is a member), have opined there should be a smooth path to reaching the Effective Date.
“The IBEW resolutions are incorporated into section 8.6 of the plan, Exhibit B of the plan, and paragraph 38(d) of the confirmation order. This structure allows pending grievances to be resolved in the ordinary course of business going forward,” said Brad Knapp, IBEW 1245’s bankruptcy counsel. “Any appeal must be filed within fourteen days. Because the confirmation order was entered on a Saturday, that deadline would extend to July 6. The entry of the order today should satisfy Assembly Bill 1054 requirements unless someone appeals the order and is also able to get a stay pending appeal. That is a very high standard, and I see really no chance of success there.”
–Doug Girouard, IBEW 1245 Assistant Business Manager and member of the Unsecured Creditors’ Committee