FILE PHOTO: A PG&E truck carrying an American Flag drives previous PG&E restore vehicles in Paradise, California, U.S. November 21, 2018. REUTERS/Elijah Nouvelage
NEW YORK (Reuters) – The town of San Francisco has provided to purchase PG&E Corp’s (PCG.N) energy strains and different electrical system infrastructure serving town for $2.5 billion, in keeping with the San Francisco Chronicle.
Representatives for the corporate, the San Francisco Public Utilities Fee and the mayor’s workplace didn’t instantly reply to requests for remark.
The acquisition could be funded by way of a municipal energy bond handed by voters final yr and could be paid off by way of prospects’ electrical payments, in keeping with the SF Chronicle, which additionally famous the deal would create California’s third-largest government-owned electrical utility, after the Los Angeles Division of Water and Energy and the Sacramento Municipal Utility District.
The utility sought Chapter 11 chapter safety in January. The corporate was dealing with greater than $30 billion in liabilities from wildfires in California in 2017 and 2018, together with November’s Camp Fireplace, the deadliest and most damaging wildfire of the state’s trendy historical past.
PG&E is anticipated to file a reorganization plan in a U.S. chapter court docket in San Francisco this week that addresses its about $30 billion in liabilities from the wildfires.
Company reorganization plans typically want widespread help from collectors, and debtors can spend months getting the mandatory backing. PG&E’s plan should be authorized by U.S. Choose Dennis Montali for the corporate to emerge from Chapter 11 chapter reorganization.
On June four, the San Francisco Public Utilities Fee introduced it had employed an adviser to discover a potential acquisition of the corporate’s distribution belongings.
For the reason that starting of the yr, PG&E’s inventory has plunged 57.1%.
Reporting by Stephen Culp; Enhancing by Richard Chang and Lisa Shumaker