FRANCISCO – In a filing this morning with the
U.S. Bankruptcy Court, Pacific Gas and Electric Company
stated that all conditions to effectiveness of its plan
of reorganization have been satisfied as of today. The
company stated that the effective date of the plan will
occur on April 12, 2004, and that the distribution record
date for purposes of determining the holders of record
of allowed claims who are entitled to receive payment
under the plan on the effective date will be March 29,
Holders of allowed claims
or equity interests as of the close of business on the distribution record
date are entitled to the distributions that will be made under the plan
on the effective date or as soon as practicable thereafter. The company
will have no obligation to recognize any transfer of any allowed claim
or equity interest occurring after the distribution record date.
PG&E voluntarily filed
for reorganization under Chapter 11 of the U.S. Bankruptcy Code on April
6, 2001. Under the company’s confirmed plan of reorganization, PG&E
will pay in full or otherwise satisfy undisputed claims of creditors on
the effective date or as soon as practicable thereafter.
Undisputed claims to be paid
or otherwise satisfied include those relating to PG&E’s medium-term
notes, floating rate notes, senior notes, first and refunding mortgage
bonds, Southern San Joaquin Power Authority Bonds, and commercial paper.
On the effective date or as soon as practicable thereafter holders of
these claims will be paid 100 percent of the principal amount of these
obligations (plus any applicable premium), plus accrued and unpaid interest
to April 12, 2004. Separate first quarter interest payments for medium-term
notes, floating rate notes, senior notes, Southern San Joaquin Power Authority
Bonds, and commercial paper will be made on April 1, 2004.
The various trustees’
records as to holders of these obligations generally will be closed as
of March 29, 2004, the distribution record date. Following payment on
the effective date, these securities will be retired.
PG&E will pay the principal
and all accrued and unpaid interest on all its 7.90 percent Deferrable
Interest Subordinated Debentures, or QUIDS. On the effective date or as
soon as practicable thereafter, QUIDS holders of record as of the distribution
record date will be paid principal of $25.00 per debenture, or 100 percent
of the principal amount totaling $300 million, plus accrued and unpaid
interest from April 1, 2004 to April 12, 2004, for a total of $25.060347
per debenture. A separate interest payment for the quarter ending March
31, 2004 will be made on March 31, 2004. Following payment on the effective
date, the QUIDS will be retired.
The transfer agent’s
books will be closed as of the March 29, 2004 distribution record date,
and trading will be suspended. National City Bank of Indiana is the trustee
for the QUIDS.
On the effective date or as
soon as practicable thereafter, holders of preferred stock will be paid
previously unpaid dividends for the period from November 1, 2000 through
January 31, 2004. PG&E has 11 series of preferred stock. The amount
of accumulated, unpaid dividends is $82.3 million. The amount to be paid
per series per share is as follows:
$25 Par Value
to be Paid
The American Stock Exchange
has advised the company that the ex-dividend date for these payments will
be April 13, 2004.
Also on the effective date
or as soon as practicable thereafter, the company will bring current its
preferred stock sinking fund obligations. Two of PG&E’s preferred
stock series, 6.57 percent and 6.30 percent, have past due sinking fund
payments totaling $10.6 million. The sinking fund payments will be used
to redeem, on a pro rata basis, 10 percent of the 6.57 percent series
and 5 percent of the 6.30 percent series. A redemption price of $25.00
will be paid per redeemed share, plus unpaid dividends from February 1,
2004 through April 12, 2004. Holders of redeemed shares of the 6.57 percent
series will receive a total of $25.3285 per redeemed share and holders
of redeemed shares of the 6.30 percent series will receive a total of
$25.315 per redeemed share.
All allowed creditor claims
held by lenders, energy suppliers, vendors and other creditors with undisputed
claims will be paid consistent with the terms of the company’s plan
Funds for disputed claims that
are not resolved before the effective date will be held in escrow, pending
successful resolution of those claims.
Certain claims, including those
related to environmental, pending litigation and tort claims, will pass
through the company’s bankruptcy and be satisfied in the ordinary
course of business at such time and in such manner as the company is obligated
to satisfy such claims under applicable law.