Thank you for sharing!

Your article was successfully shared with the contacts you provided.
The judge overseeing Pacific Gas & Electric Co.’s Chapter 11 bankruptcy case suspended the plan confirmation trial for more than a month Thursday, further lengthening what many believe to be the longest such trial in history. At a hearing in the San Francisco division of the U.S. Bankruptcy Court, Judge Dennis Montali put the trial on hold until early April to allow time for all parties to conduct discovery on PG&E’s latest modifications to its reorganization plan. The ruling casts further doubt as to when the trial to select one of two competing reorganization plans for PG&E will conclude. The trial phase of the Chapter 11 case commenced in November and was initially scheduled through February. “The case has been going on incredibly long,” said Ron Oliner, a partner at Buchalter, Nemer, Fields & Younger who is representing a creditor in the case. “Admittedly this is a case of a whole different magnitude, but there’s just a lot of lawyering on either side and developments extraneous to the courtroom that are just keeping this thing going.” The latest delay also means the legal fees will likely keep piling up. In the latest report by the U.S. trustee, professional fees and expenses in the PG&E case through Nov. 30, 2002, totaled $88 million. Thursday’s ruling stems from a number of changes that PG&E made to its reorganization plan in response to a letter by credit-rating agency Standard & Poor’s. The agency indicated that the four companies created through PG&E’s reorganization could receive investment-grade credit ratings if the plan met a number of requirements, including a $700 million cash infusion from parent company PG&E Corp. PG&E modified its plan accordingly on Monday, and has maintained that the changes should not require significantly delaying the trial. In suspending the trial until early April, Judge Montali accepted a proposal advanced by the city and county of San Francisco, Palo Alto and a number of other counties that are objecting to the PG&E reorganization plan. “Because the objectors do not have the unlimited resources that PG&E and PG&E Corp. have that allow those parties to pursue discovery while the trial is ongoing, the objectors propose a short, five-week ‘discovery only’ period,” read a statement filed with the bankruptcy court. “There is no basis to complain about the ‘delay’ caused by the objectors’ proposal,” the statement continued. “The objectors could point out that any such delay results from PG&E and PG&E Corp.’s own actions.”

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at [email protected]


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.