Utility fully resolved more than 20 objections; almost all others partially resolved
SAN FRANCISCO, Jan. 10, 2002 – As requested by the U.S. Bankruptcy Court, Pacific Gas and Electric Company today filed with the Court a summary of the remaining objections to the company’s Disclosure Statement, the document which accompanies and describes the company’s plan to emerge from bankruptcy.
This summary of objections will be used by the Court in the upcoming hearing to determine the adequacy of the Disclosure Statement, scheduled to be held on January 14.
Of the more than 12,000 creditor claims on file in PG&E’s bankruptcy, only 73 parties raised objection to the Disclosure Statement. Beginning as soon as these were received, the utility has contacted and spoken with every single objecting party in an effort to resolve their concerns. Through discussions and negotiations, and through additions and changes to the Disclosure Statement, PG&E was able to get more than 20 objections entirely withdrawn and almost all others at least partially resolved.
The utility states in its filing that it believes that none of the remaining objections – many of which raise nearly identical issues – have legal or factual merit. Following is a summary of the categories of remaining objections:
– Long Term Notes – This group comprises those Objectors that are indenture trustees for holders of various categories of long-term notes issued by PG&E.
– Power Generator Objections – This group includes not only the various generator Objectors but also the Official Committee of Participant Creditors of the California Power Exchange.
– Letter of Credit Bank Objections – This group is comprised of banks that have issued letters of credit supporting the issuance of bonds by PG&E or have provided other financial accommodation to PG&E. The objections largely raise issues of further disclosure of financial issues.
– Environmental Issues Objections – This group includes Objectors raising various issues arising out of perceived environmental effects of the reorganization proposed in the Plan or environmental claims against PG&E.
– Litigation Related Objections – This group includes Objectors who are involved in pre-petition litigation with PG&E; these objections raise issues pertaining to disposition of their individual claims.
– Executory Contract Issues – This group includes Objectors who are parties to executory contracts with the Debtor. The objections are principally concerned with the proposed treatment of these executory contracts.
– Northern California Power Agency, County and City Issues Objections
– These Objectors raise issues common to various California cities and counties and NCPA.
– Miscellaneous – This grouping includes parties whose objections are specifically concerned with their individual circumstances or do not fall into one of the above groups.