PG&E Corp., seeking to fend off a group of bondholders trying to take control of its bankruptcy, said it has lined up $34.4 billion in debt financing commitments for its planned reorganization. The California utility giant has received the commitments from banks including JPMorgan Chase & Co., according to court papers filed Oct. 6. Terms of the financing are “far superior” to a rival proposal from the bondholder group led by Elliott Management Corp. and Pacific Investment Management Co., the company said.
The financing was included in a PG&E filing defending its exclusive right to move forward with a plan to exit the largest utility bankruptcy in U.S. history. While the judge overseeing the case has already ruled that the San Francisco-based company should keep that control, the bondholder group is fighting to kill the exclusivity so it can pitch a proposal that would all but wipe out current shareholders and give creditors a controlling stake.
