(RTTNews) - PG&E Corp. (PCG) filed a proposal with a federal court that plots a road map for the company to exit bankruptcy next year and pay off its creditors, including numerous victims of wildfires linked to the company and certain public entities, related claims at $17.9 billion.
"Under the Plan we filed today, we will meet our commitment to fairly compensate wildfire victims and we will emerge from Chapter 11 financially sound and able to continue meeting California's clean energy goals," said Bill Johnson, PG&E Corporation's Chief Executive Officer and President.
The reorganization plan proposed by PG&E would cap payments to wildfire victims who filed claims directly against the company at $8.4 billion.
The proposal also would cap payments to insurance carriers that are seeking reimbursement from PG&E for wildfire claims they paid their customers at $8.5 billion.
PG&E also agreed to pay $1 billion to settle claims of certain public entities relating to the wildfires.
PG&E said it plans to work with financial institutions over the next several weeks to obtain up to $14 billion of total equity financing commitments. It will use all proceeds of the equity commitments to pay wildfire victims and help fund the company's contributions to the state wildfire fund.
In January 2019, PG&E and its primary operating subsidiary, Pacific Gas and Electric Co. filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Northern District of California.
PCG closed Monday's regular trading at $11.19, up $1.00 or 9.81 percent.
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