Facing potential liabilities of $30 billion from catastrophic wildfires in Northern California, PG&E, California’s largest utility company, filed for bankruptcy on January 29, 2019. The Official Committee of Unsecured Creditors hired FTI Consulting to protect their interests and maximize recovery.
FTI Consulting’s work helped lead to a $59 billion plan of reorganization that included the issuance of additional debt and equity to help pay for $25.5 billion in wildfire-related claims.
The committee of creditors was positioned as a prominent and well-respected voice for pragmatic and reasonable solutions, which factored into favorable legislative outcomes and courtroom developments.
PG&E emerged as an operationally and financially stable company with a path to becoming a viable investment-grade utility.
Drawing on deep expertise in energy and power, turnaround and restructuring, valuation and damages, and strategic communications, a cross-business team from FTI Consulting provided advice and led on the Chapter 11 bankruptcy filing.
Experts worked with the committee of creditors to provide detailed analyses of PG&E’s business operations, wildfire claims and wildfire mitigation plans.
Our team identified a local Sacramento-based advocacy firm to partner with, ensuring that the committee’s positions resonated with the public, regulators and state government throughout the restructuring process.
Our professionals evaluated proposed plans of reorganization to assess the treatment of the various creditor groups, including the determination of the sufficiency of the trust funds for prior and potential wildfire claimants.
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