Judge: Court Will Consider Rival Proposal for PG&E Reorganization
The post Judge: Court Will Consider Rival Proposal for PG&E Reorganization appeared first on POWER Magazine.
A federal bankruptcy judge on Oct. 9 ruled that Pacific Gas & Electric (PG&E), California’s largest utility, does not have the sole right to determine the terms of its reorganization. Judge Dennis Montali said those who support a rival proposal, which was devised by a group of the utility’s creditors, can have their plan considered.
The decision could have major consequences for the utility’s customers. PG&E filed for bankruptcy protection in January, with the company saying it faced $ 30 billion or more in liabilities related to wildfires in California that caused massive property damage and left dozens dead.
Montali ruled that the court can look at a reorganization plan created by a group of PG&E creditors that includes prominent hedge funds. The plan also is backed by individuals who have claims against the utility for wildfire damage.
Montali’s ruling Wednesday came after a court hearing on Monday in San Francisco.…
Distress and Deals Continue to Persist in Energy Sector
The post Distress and Deals Continue to Persist in Energy Sector appeared first on POWER Magazine.
At the end of last year, the power market began to lose steam. The credit market wasn’t as strong as it was at the start of the year and many people began speculating “doom and gloom” for the market. However, over the last few months, the power market has picked up and is beginning to show resiliency. As we explore below, there has also been a healthy amount of merger and acquisition (M&A) activity, highlighting that investor confidence is returning, even if only slightly.
The second quarter (Q2) of 2019, in particular, saw strong deal value compared to Q1, according to a recent report from PwC. The report notes that although overall deal volume decreased in Q2, deal value increased by nearly 55%, making it the highest-value quarter since Q2 2018. This was influenced by the absence of mega-deals ($ 5 billion or more) for the fourth consecutive quarter.…