California Gov. Gavin Newsom has agreed to drop his objections to a $20 billion financing package to lift PG&E Corp. out of bankruptcy, responding to concerns about how California’s largest utility will fare in turbulent financial markets, WSJ Pro Bankruptcy reported. The judge overseeing PG&E Corp.’s bankruptcy said yesterday that he would approve the financing package, which allows the company to raise $9 billion in new equity and $10.8 billion in new debt to dig itself out of chapter 11. Newsom has been a staunch critic of PG&E’s bankruptcy exit strategy, saying that it would bind the utility to pay excessive fees to big investment firms for a turnaround plan he has found unacceptable. But “given where the markets are,” Newsom agreed to not block the exit financing, his lawyer Matthew Hinker said at a hearing in the U.S. Bankruptcy Court in San Francisco.
