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Pacific Gas & Electric meets its reorganization plan requirements, set to emerge
By Jeff Pines
Washington, March 26 - Pacific Gas & Electric Co. said in a news release it has met all of the conditions for its reorganization plan and that April 12 will be the effective date for its plan.
The distribution record date for all allowed claims will be March 29.
Undisputed claims to be paid with 100% of the principal, any premium and the interest to April 12, or satisfied in some other way, include medium-term notes, floating-rate notes, senior notes, first and refunding mortgage notes, Southern San Joaquin Power Authority bonds and commercial paper. They will be paid on April 12. The company will make separate first quarter interest payments on all of the above except the first mortgage and refunding notes on April 1.
In addition, the San Francisco-base utility also will pay in full plus the interest on its 7.9% quarterly interest subordinated debentures, or QUIDS, which will be retired. PG&E will make a separate interest payment on March 31. The company has $300 million of QUIDS outstanding.
It also will pay previously unpaid dividends from Nov. 1, 2000 to Jan. 31 on its 11 series of preferred stock. The total amount of unpaid dividends is $82.3 million.
Sinking fund obligations will be brought current, too. Its 6.57% and 6.3% preferred stock are $10.6 million behind. The payments will be used to redeem 10% of the 6.57% series and 5% of the 6.3% series. The redemption price is $25 per share plus dividends from Feb. 1 to April 12. Those who hold 6.57% shares will get $25.3285 per share, and those who have 6.3% shares will get $25.315 per share.
Pacific Gas & Electric started having financial troubles after wholesale utility rates began rising above the frozen rates that the company was required to charge. Pacific Gas & Electric ultimately defaulted on its debt and filed for Chapter 11 on April 6, 2001.
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