SAN FRANCISCO, Oct. 10, 2003 — At a status conference held Wednesday, Pacific Gas and Electric Company provided the U.S. Bankruptcy Court with preliminary results of the creditor vote, showing overwhelming support for the plan of reorganization that embodies the terms of the proposed settlement agreement between PG&E and the staff of the California Public Utilities Commission.
The final results will be officially submitted to the court next week. The utility issued the following statement on the preliminary results of the creditor vote:
“Pacific Gas and Electric Company is gratified that more than 97% of the voting creditors supported the plan of reorganization. The plan received approval from all of the creditor classes that voted.
“This outcome is another positive indication that the proposed settlement agreement will resolve the Chapter 11 case in a manner that is fair to customers, employees and shareholders. It will allow the utility to resolve creditor claims, reduce customer rates beginning in 2004, and emerge from Chapter 11 as a financially healthy, investment grade company.”
PG&E’s plan of reorganization enjoys broad based support from a number of local and statewide organizations, including labor unions, business associations, and community groups.
Following the June 19th announcement of the proposed settlement agreement between PG&E and the CPUC staff, PG&E and the Official Creditors’ Committee submitted a new plan of reorganization to the Bankruptcy Court. Eligible creditors had the opportunity to vote on the new plan between August 15 and September 29.
The Bankruptcy Court confirmation hearings are scheduled to begin on November 10, 2003. CPUC hearings to consider the proposed settlement were completed on September 26, 2003, and the full Commission is scheduled to issue its final decision in late December 2003. Assuming Bankruptcy Court confirmation, CPUC approval, and satisfaction of the other conditions to implementation of the plan of reorganization, PG&E believes it is on track to emerge from Chapter 11 in the first quarter of 2004.