PG&E shares surge after company secures $5.5 billion in bankruptcy financing
WASHINGTON: United States power producer PG&E Corp’s (PCG.N) shares surged more than 10 percent on Tuesday after it said it had secured $5.5 billion in debtor-in-possession (DIP) financing from four banks as it prepares to file for Chapter-11 bankruptcy protection.
The financing will comprise a $3.5 billion revolving credit facility, a $1.5 billion term loan and a $500 million delayed-draw term loan.
Investment banks JPMorgan Chase & Co (JPM.N), Bank of America Merrill Lynch (BAC.N), Barclays Plc (BARC.L) and Citigroup Inc (C.N) will provide financing, the company said in a filing.
The company said it expects to file for bankruptcy on or about Jan. 29.
PG&E, which provides electricity and natural gas to 16 million customers in northern and central California, faces widespread litigation, government investigations and liabilities that could potentially exceed $30 billion because of wildfires in the state.