This week, Pacific Gas & Electric (“PG&E”), the state’s largest utility, filed for Chapter 11 bankruptcy protection in the Northern District of California. PG&E claims over $50 billion in assets and $50 billion in liabilities, but has not yet filed the disclosures that identify its contract counterparties, creditors and other business partners who have an interest in its bankruptcy case.
Briefly, in a filing under Chapter 11, the bankrupt, or “debtor,” attempts to work out a court-approved plan with its creditors to enable the debtor to continue operating or to liquidate over time in an orderly manner. As a “debtor in possession,” PG&E will maintain possession and control of its assets while undergoing its reorganization under Chapter 11. Significantly, creditors and other parties with interests in a Chapter 11 case must often move quickly to protect their interests.
PG&E’s bankruptcy will potentially impact members of, among others, the following categories:
- Companies who contract with PG&E to sell and deliver materials, equipment, specially fabricated repair and replacement parts, supplies and other goods and/or services in the ordinary course of business
- Commercial landlords and tenants in unexpired leases of real property with PG&E
- Municipalities and other governmental entities holding damage, environmental and/or tax claims against PG&E
- Entities in pending litigation with PG&E, and/or those holding claims for indemnity
- Energy service providers
- Employees of PG&E who hold claims for unpaid wages
- Those who made unsecured or secured loans or advances to PG&E
Our team of bankruptcy professionals has extensive experience representing creditors and other stakeholders in the bankruptcy courts of the Northern District of California, and stands ready to advocate for you or your company in PG&E’s Chapter 11 filing. Please contact us with any questions or concerns. [Note: we do not represent individuals who may have claims associated with property damage, personal injury, wrongful death, or rate/collection disputes.]