PG&E’s Voluntary Reorganization

Cravath is representing PG&E as principal advisory counsel to its Board of Directors; in corporate matters related to its Chapter 11 proceedings, including the arrangement of Debtor-in-Possession (“DIP”) financing; and as lead trial counsel in related litigation.

On January 14, 2019, following a comprehensive review, PG&E Corporation (“PG&E” or “the Company”) announced its intent to initiate voluntary reorganization proceedings under Chapter 11, through which it intends to address its responsibilities to stakeholders and achieve an orderly, fair and expeditious resolution of potential liabilities resulting from the unprecedented 2017 and 2018 Northern California wildfires.

The Company provided the 15-day advance notice required by recently enacted California law that it and its wholly owned subsidiary Pacific Gas and Electric Company currently intend to file petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code on or about January 29, 2019.

At the time it files for relief under Chapter 11, PG&E expects to have approximately $5.5 billion of committed DIP financing, which will provide PG&E with sufficient liquidity to fund its ongoing operations, including its ability to provide safe service to customers.

Cravath’s corporate team includes partners Erik R. Tavzel (Picture) and Andrew C. Elken.

Cravath’s litigation team, which continues to represent PG&E as lead trial counsel and coordinating counsel in resolving the hundreds of lawsuits filed against the Company in connection with the devastating and unprecedented wildfires in California, includes partners Evan R. Chesler, Julie A. North, Darin P. McAtee, Timothy G. Cameron, Kevin J. Orsini, Omid H. Nasab and Damaris Hernández.

The Cravath team leading the arrangement of DIP financing for PG&E in connection with the Chapter 11 bankruptcy proceedings includes partners George E. Zobitz, Paul H. Zumbro, Stephen M. Kessing and Nicholas A. Dorsey.

Involved fees earner: Timothy Cameron – Cravath Swaine & Moore; Evan R. Chesler – Cravath Swaine & Moore; Nicholas Dorsey – Cravath Swaine & Moore; Andrew C. Elken – Cravath Swaine & Moore; Damaris Hernandez – Cravath Swaine & Moore; Stephen Kessing – Cravath Swaine & Moore; Darin McAtee – Cravath Swaine & Moore; Omid Nasab – Cravath Swaine & Moore; Julie North – Cravath Swaine & Moore; Kevin Orsini – Cravath Swaine & Moore; Erik Tavzel – Cravath Swaine & Moore; George E. Zobitz – Cravath Swaine & Moore; Paul Zumbro – Cravath Swaine & Moore;

Law Firms: Cravath Swaine & Moore;

Clients: PG&E Corporation;

Author: Ambrogio Visconti