Troubled California power company PG&E wants to emerge from bankruptcy protection by the end of the month and it's looking to Wall Street for cash to get it done.
PG&E announced a plan Monday to sell nearly $6 billion in new company stock. In addition, a number of private equity firms have agreed to take an equity stake worth up to $3.25 billion once PG&E completes the bankruptcy process.
There's also a debt sale coming. A source told Reuters Friday that the utility provider is working on an $11 billion debt-financing package.
PG&E is in the a race against the clock. It needs to be out of bankruptcy by June 30th in order to take part in a state-backed wildfire fund that would cap liabilities from wildfires.
California's largest utility was brought to the brink as it faced potential liabilities upwards of $30 billion after its equipment was linked to major wildfires in 2017 and 2018. Its road through bankruptcy has been rocky. The state regulator and the governor ordered a boardroom shake-up, saying the public utility had not done enough to clean up its mess and prevent another disaster from occurring.
PG&E's financial plan to dig itself out of the bankruptcy hole received a green light from investors on Monday. Shares traded higher.