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PG&E shares surge after company secures $5.5 bln in bankruptcy financing

PG&E shares surge after company secures $5.5 bln in bankruptcy financing
FILE PHOTO: A PG&E truck carrying an American Flag drives past PG&E repair trucks in Paradise, California, U.S. November 21, 2018. REUTERS/Elijah Nouvelage   -   Copyright  Elijah Nouvelage(Reuters)
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(Reuters) – U.S. power producer PG&E Corp’s <PCG.N> shares surged more than 10 percent on Tuesday after it said it had secured $5.5 billion in debtor-in-possession (DIP) financing from four banks as it prepares to file for Chapter-11 bankruptcy protection.

The financing will comprise a $3.5 billion revolving credit facility, a $1.5 billion term loan and a $500 million delayed-draw term loan.

Investment banks JPMorgan Chase & Co <JPM.N>, Bank of America Merrill Lynch <BAC.N>, Barclays Plc <BARC.L> and Citigroup Inc <C.N> will provide financing, the company said in a filing.

The company said it expects to file for bankruptcy on or about Jan. 29.

PG&E, which provides electricity and natural gas to 16 million customers in northern and central California, faces widespread litigation, government investigations and liabilities that could potentially exceed $30 billion because of wildfires in the state.

(Reporting by Debroop Roy in Bengaluru; Editing by Shinjini Ganguli)

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