PG&E Corp. arrived in chapter 11 bankruptcy at six minutes after midnight on Tuesday, saying it has an immediate need to borrow $1.5 billion as it launches what it says will be a long turnaround effort, WSJ Pro Bankruptcy reported. The loan, from a syndicate of Wall Street lenders led by JPMorgan Chase & Co., will grow to $5.5 billion, or even higher, if it is approved by the bankruptcy court. There’s room in the loan package for additional borrowing of up to $4 billion if PG&E convinces a judge it needs the money for a prolonged bankruptcy stay, court papers say. According to PG&E, the financing is designed to keep it going for years, as it tackles liabilities for deaths and damage from wildfires linked to its equipment, liabilities that it says could add up to $30 billion.
