PG&E U.S. Trustee objection questions need for interim DIP financing

By Caroline Salls

Pittsburgh, Jan. 31 – The U.S. Trustee overseeing PG&E Corp.’s Chapter 11 case objected to the company’s motion for approval of debtor-in-possession financing, arguing in a Thursday filing with the U.S. Bankruptcy Court for the Northern District of California that “it is unclear whether the $1.5 billion which the debtors propose to borrow on an interim basis is necessary to avoid immediate and irreparable harm.”

Acting Region 12 U.S. trustee James L. Snyder also said in the objection that “the debtors have not demonstrated that certain provisions in the proposed financing should be approved at this early stage of the case.”

In addition, Snyder questioned the fact that transaction fees related to the proposed financing have been filed under seal.

The electric and natural gas utility is based in San Francisco. The company filed bankruptcy on Jan. 29 under Chapter 11 case number 19-30088.

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