Today, the United States Bankruptcy Court approved the California Public Utilities Commission's (PUC) Disclosure Statement for its Alternate Plan of Reorganization in PG&E's Chapter 11 case.
This clears the way for both competing plans to be mailed out to creditors on June 17, 2002, for vote solicitation.
"This is another victory for the PUC in our efforts to protect consumers and the state. The PUC is confident that creditors will vote and express a preference for our plan as the better plan because it is straightforward, pays all creditors in full, meets the requirements to return PG&E to an investment grade utility, retains the current regulatory structure intact, and complies with applicable state law, including important environmental laws," said Gary Cohen, General Counsel for the PUC. "PG&E's plan, in contrast, is not feasible, is unlawful, and faces serious legal challenges before the Bankruptcy Court, the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission, and the Securities and Exchange Commission."
Cohen also stated, "We regret that the efforts to achieve a consensual resolution of PG&E's bankruptcy through mediation have terminated at this time, because we believe that this would be in the best interests of the state, ratepayers, and PG&E."
Creditors are to file their confirmation objections to either plan by July 17, 2002. There will be a status conference hearing on August 1, 2002, at which time further dates will be set in the confirmation process.