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PG&E Bankruptcy and Equipment Lessors

By: Peter C. Califano, LEAN Attorney

On Tuesday, January 29th, 2019, PG&E’s parent and operating company each filed a Chapter 11 bankruptcy case in San Francisco. The cases are being jointly administered with the lead case as Case No. 19-30088 (PG&E Corporation). The Debtors explained that the main reason for the bankruptcy filing was due to the mounting claims from the recent Northern California wildfires (estimates go as high as $30 billion in personal and property damages) that would eventually overtake the utility’s ability to litigate and pay claims. In the meantime, a $5.5 billion post-petition loan has been proposed and the Debtors are beginning the long process to reorganize.

As equipment financing companies and lessors, you may find yourself involved in the bankruptcy with PG&E due to a contract for the purchase and sale or lease of equipment. Here are some points to consider as you decide how to respond to the filing.

 

Please call Peter Califano if you would like to discuss further. He can be reached at:

Cooper, White & Cooper LLP
(415) 433-1900 Tel
(415) 456-5530 Fax
pcalifano@cwclaw.com
www.cwclaw.com
201 California Street, 17th Floor
San Francisco, CA 94111

ABOUT COOPER, WHITE & COOPER LLP

Cooper, White & Cooper LLP is a mid-sized law firm with offices in San Francisco and Walnut Creek, California. Founded in 1896, Cooper’s practice has expanded over its 120+ year history to provide comprehensive representation in most areas of business law and civil trial practice. It is best known for its representation of clients in the areas of business, corporate, employment, media, telecommunications, insolvency, finance, public utilities and real estate law.

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