Pacific Gas & Electric (PG&E) parent company PG&E Corp. has launched public offerings of its common stock and equity units, seeking $4 billion and around $1.23 billion of gross proceeds, respectively, to partially fund its exit from bankruptcy, the company announced Monday
The announcement comes two days after Bankruptcy Judge Dennis Montali confirmed PG&E’s Chapter 11 reorganization plan, allowing the utility to access California’s $21 billion wildfire insurance fund. PG&E expects to emerge from bankruptcy on or around July 1.
Exiting bankruptcy will put PG&E on the financial footing to operate soundly, Catherine Sandoval, associate professor at the Santa Clara University School of Law and former California Public Utilities Commission (CPUC) commissioner, told Utility Dive — but the company is still exposed to the risks of catastrophic wildfires, which will need to be tackled by its new leadership.