PG&E looks to Wall St to fund bankruptcy exit

Video Credit: Reuters Studio
Published on June 8, 2020 - Duration: 01:19s

PG&E looks to Wall St to fund bankruptcy exit

California-based utility giant PG&E announced plans Monday to raise $5.75 billion from public stock offerings as it tries to emerge from Chapter 11 bankruptcy by the end of this month.

Conway G.

Gittens has more on the plan.

PG&E looks to Wall St to fund bankruptcy exit

Troubled California power company PG&E wants to emerge from bankruptcy protection by the end of the month and it's looking to Wall Street for cash to get it done.

PG&E announced a plan Monday to sell nearly $6 billion in new company stock.

In addition, a number of private equity firms have agreed to take an equity stake worth up to $3.25 billion once PG&E completes the bankruptcy process.

There's also a debt sale coming.

A source told Reuters Friday that the utility provider is working on an $11 billion debt-financing package.

PG&E is in the a race against the clock.

It needs to be out of bankruptcy by June 30th in order to take part in a state-backed wildfire fund that would cap liabilities from wildfires.

California's largest utility was brought to the brink as it faced potential liabilities upwards of $30 billion after its equipment was linked to major wildfires in 2017 and 2018.

Its road through bankruptcy has been rocky.

The state regulator and the governor ordered a boardroom shake-up, saying the public utility had not done enough to clean up its mess and prevent another disaster from occurring.

PG&E's financial plan to dig itself out of the bankruptcy hole received a green light from investors on Monday.

Shares traded higher.

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