The California Public Utilities Commission (PUC) today announced that the Official Committee of Unsecured Creditors in the PG&E Chapter 11 case will recommend a "yes" vote on the PUC's proposed Plan of Reorganization for PG&E.
"We are very pleased that the Creditors' Committee has decided to recommend a "yes" vote on the Commission's plan, after having supported only PG&E's plan for the past seven months," said Gary Cohen, General Counsel of the PUC. "We are confident that creditors will prefer the Commission's plan, because it gets them paid in full by the end of January 2003 without the need for a rate increase, and it leaves PG&E as a state regulated utility as it has been for more than 90 years. PG&E's plan, by contrast, violates at least 37 state laws and, therefore, cannot be confirmed by the Bankruptcy Court," Cohen said.
The Creditors' Committee recommends to unsecured creditors whether to vote for or against the PUC's plan and PG&E's plan. The creditors must consider the two plans and select the one they prefer. The U.S. Bankruptcy Court Judge will then decide which plan to confirm.