Fire Claimants, Impaired Creditors and Shareholders Receive Voting Materials
Voting Deadline is May 15, 2020
PG&E on Track for Plan Confirmation by June 30, 2020
SAN FRANCISCO, Calif. — PG&E Corporation and Pacific Gas and Electric Company (together, "PG&E") have sent voting materials to approximately 250,000 parties entitled to vote on PG&E’s Chapter 11 Plan of Reorganization (the "Plan"). Eligible voting parties include fire claimants, certain holders of prepetition funded debt and other creditors, and shareholders.
All ballots must be received by May 15, 2020, at 4 p.m. Pacific Time (PT) to be counted.
Voting parties may direct questions to their own legal counsel or PG&E's court-appointed claims agent, Prime Clerk, at (888) 909-0100.
Voting Package and Procedures
The voting materials generally include the following:
- The Bankruptcy Court's order approving PG&E's Disclosure Statement and voting materials and procedures;
- A legal notice advising parties of the May 27, 2020, date of the commencement of the Plan confirmation hearing before the Bankruptcy Court, which is when the Court will consider whether PG&E's Plan meets the requirements for confirmation under the Bankruptcy Code;
- PG&E's court-approved Disclosure Statement (including a supplement regarding recent events in the Chapter 11 cases), with respect to PG&E's Plan, with the full Plan attached; and
- A ballot to vote to accept or reject PG&E's Plan and a return envelope with prepaid postage. For certain fire victims, voting materials may not include a ballot if those claimants are to be included on a master ballot to be submitted by their attorneys.
A copy of the Disclosure Statement can be accessed here. All parties are encouraged to review the Disclosure Statement.
Parties may vote electronically, by mail or hand delivery as described below. Ballots can be submitted in the following ways:
- Through the electronic balloting portal found at https://restructuring.primeclerk.com/pge/ and by clicking on the "Submit E-Ballot" link.
- By mail to:
PG&E Ballot Processing
c/o Prime Clerk, LLC
One Grand Central Place
60 East 42nd Street, Suite 1440
New York, NY 10165
- By hand delivery to the court-appointed claims agent in New York City at the above address. Parties need to first email Prime Clerk in advance at firstname.lastname@example.org to coordinate hand delivery.
Parties not eligible to vote on the Plan will receive a notice of their non-voting status. Non-voting parties include those with claims or interests in classes that are unimpaired under the Plan and therefore presumed to have accepted the Plan or are otherwise deemed not entitled to vote on the Plan.
New Commitments to Position PG&E for Long-Term Success
As of March 20, 2020, PG&E made a series of new commitments regarding its governance, operations, and financial structure, all designed to further prioritize safety and expedite the company's successful emergence from Chapter 11.
Those new commitments included:
- Supporting the California Public Utilities Commission's enactment of measures to strengthen PG&E's governance and operations, including enhanced regulatory oversight and enforcement that provides course-correction tools as well as stronger enforcement if it becomes necessary;
- Agreeing to host an observer to provide the State with insight into the company's progress on safety goals before the company exits Chapter 11;
- Agreeing that, in the unlikely event the Plan is not confirmed, or PG&E does not exit Chapter 11 in a timely manner, an orderly process for a sale of the business to the State or another party will be commenced;
- A commitment not to reinstate a dividend for approximately three years, which is estimated to contribute an additional $4 billion of equity to pay down debt and invest in the business;
- Pursuing a rate-neutral $7.5 billion securitization transaction after PG&E emerges from Chapter 11, to reduce the cost of financing for customers and to accelerate payments to wildfire victims; and
- Committing not to seek recovery in customer rates of any portion of the approximately $25.5 billion in value that will be paid with respect to the 2017-2018 wildfires under the Plan when PG&E emerges from Chapter 11 (except through the rate-neutral securitization transaction).
Existing Commitments with Respect to PG&E's Plan of Reorganization
Previously, PG&E took a number of significant steps to ensure its Plan complies with Assembly Bill 1054, including:
- Selecting a substantial number of new members of the Boards of Directors of PG&E Corporation and Pacific Gas and Electric Company upon emergence from Chapter 11;
- Pursuing a plan to regionalize the company's operations and its infrastructure to enhance the company's focus on local communities and customers;
- Appointing an independent safety advisor after the term of the court-appointed Federal Monitor expires; and
- Taking other safety and oversight actions.
Importantly, PG&E is not waiting for approval of its Plan to implement change. Most recently, PG&E appointed an industrial safety expert, Francisco Benavides, to a newly expanded role of Chief Safety Officer. Benavides reports directly to the PG&E Corporation Chief Executive Officer and has oversight of PG&E's strategy to further improve public and workforce safety.
As part of the Chapter 11 process, PG&E previously reached settlements valued at approximately $25.5 billion with all wildfire victims' groups including individual victims, subrogation claimants, and public entities to be implemented pursuant to PG&E's Plan of Reorganization.
About PG&E Corporation
PG&E Corporation (NYSE: PCG) is a holding company headquartered in San Francisco. It is the parent company of Pacific Gas and Electric Company, an energy company that serves 16 million Californians across a 70,000-square-mile service area in Northern and Central California. Each of PG&E Corporation and Pacific Gas and Electric Company is a separate entity, with distinct creditors and claimants, and is subject to separate laws, rules and regulations. For more information, visit pgecorp.com.
Cautionary Statement Concerning Forward-Looking Statements
This news release includes forward-looking statements that are not historical facts, including statements about the beliefs, expectations, estimates, future plans and strategies of PG&E Corporation and Pacific Gas and Electric Company. These statements are based on current expectations and assumptions, which management believes are reasonable, and on information currently available to management, but are necessarily subject to various risks and uncertainties. In addition to the risk that these assumptions prove to be inaccurate, factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include factors disclosed in PG&E Corporation and Pacific Gas and Electric Company's annual report on Form 10-K for the year ended December 31, 2019, and their subsequent reports filed with the Securities and Exchange Commission (the "SEC"), which are available on PG&E Corporation's website at pgecorp.com and on the SEC website at www.sec.gov. Additional factors include, but are not limited to, those associated with the Chapter 11 cases of PG&E Corporation and Pacific Gas and Electric Company that commenced on January 29, 2019. PG&E Corporation and Pacific Gas and Electric Company undertake no obligation to publicly update or revise any forward-looking statements, whether due to new information, future events or otherwise, except to the extent required by law.