© Reuters. Employees of Pacific Gas & Electric work in the aftermath of the Camp Fire in Paradise

(Reuters) – U.S. power producer PG&E Corp’s (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 (N:), Bank of America Merrill Lynch (N:), Barclays Plc (L:) and Citigroup Inc (N:) will provide financing, the company said in a filing.

The company said it expects to file for bankruptcy on or about Jan. 29. (https://

PG&E, which provides electricity and 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.

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2019-01-22