Court Approves PG&E’s $5.5 Billion in DIP Financing for Chapter 11 Reorganization

On March 27, 2019, PG&E Corporation (“PG&E” or “the Company”) received final approval from the United States Bankruptcy Court for the Northern District of California for its $5.5 billion in debtor‑in‑possession (“DIP”) financing, with J.P. Morgan as agent. The DIP financing will provide PG&E with necessary capital to ensure essential maintenance and continued investments in safety and reliability for the expected duration of the chapter 11 cases. PG&E and its primary operating subsidiary, Pacific Gas and Electric Company, filed their voluntary petitions under chapter 11 of the U.S. Bankruptcy Code on January 29, 2019. Cravath is representing PG&E in connection with the DIP financing and related chapter 11 case.

The Cravath team includes partners Paul H. Zumbro and George E. Zobitz and associates Paul L. Sandler, Catriela Cohen and Michael B. Kahn on restructuring matters; partner Stephen M. Kessing and associate Melanie R. Cook on financing matters; and partner Nicholas A. Dorsey and associate Caleb B. Rosser on securities matters. Emily S. Tomlinson also worked on restructuring matters and Seann E. Archibald worked on securities matters.