PG&E Corp, a power producer, stated, it has won an approval from a bankruptcy court to use up to $23 billion in financing after California Governor Gavin Newsom dropped his opposition to those financing commitments.
According to its filing, the U.S. bankruptcy court of Northern California will approve a financing motion for $11 billion in debt commitments and $9 billion in new equity that will support it’s turnaround plan. It can also raise an additional $3 billion through new shares under the plan, showed the filing.
Last month, PG&E said it plans on raising up to $25.68 billion by selling securities as it attempts to pull itself out of the bankruptcy process and bounce back into positive cash zone. Its equipment have been blamed for the deadly California wildfires.
PG&E Corp which filed for Chapter 11 protection in January 2019 had faced opposition from the governor for its restructuring plan.
Last month, PG&E submitted an updated reorganization plan including a new board of directors and new roles aimed at addressing concerns raised by Newsom.
San Francisco, California-based PG&E Corp will need to exit bankruptcy court by June 30 in order to participate in California’s fund which aims to help power utilities cushion the hit from wildfires.