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AD HOC GROUP’S OBJECTION TO 

DEBTORS’ MOTION DIRECTING JOINT 

ADMINISTRATION

PROSKAUER ROSE LLP

Martin J. Bienenstock (pro hac vice pending)

Brian S. Rosen (pro hac vice pending)

Maja Zerjal (pro hac vice pending)

Eleven Times Square

New York, NY 10036

Telephone: (212) 969-3000

Fax: (212) 969-2900

Email: mbienenstock@proskauer.com

brosen@proskauer.com

mzerjal@proskauer.com

Michael A. Firestein (SBN 110622)

Lary Alan Rappaport (SBN 87614)

Steve Y. Ma (SBN 320997)

2029 Century Park East, Suite 2400

Los Angeles, CA 90067-3010

Telephone: (310) 557-2900

Fax: (310) 557-2193

Email: mfirestein@proskauer.com

lrappaport@proskauer.com

sma@proskauer.com

Attorneys for Ad Hoc Group of Institutional Bondholders

of Pacific Gas and Electric Co.

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN FRANCISCO DIVISION

In re:

PG&E CORPORATION,

Debtor.

Tax I.D. No. 94-3234914

Case Nos. 19-30088 (DM)

 19-30089 (DM)

Chapter 11

OBJECTION OF AD HOC GROUP OF 

INSTITUTIONAL BONDHOLDERS TO 

MOTION OF DEBTORS PURSUANT 

TO FED. R. BANKR. P. 1015(b) FOR 

ENTRY OF ORDER DIRECTING 

JOINT ADMINISTRATION OF 

CHAPTER 11 CASES

In re:

PACIFIC GAS AND ELECTRIC COMPANY,

Debtor.

Tax I.D. No. 94-0742640

Case: 19-30088 Doc# 50 Filed: 01/29/19 Entered: 01/29/19 11:46:02 Page 1 of 5
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AD HOC GROUP’S OBJECTION TO 

DEBTORS’ MOTION DIRECTING JOINT 

ADMINISTRATION

2

The Ad Hoc Group of Institutional Bondholders (the “Ad Hoc Group”) of chapter 11 

debtor Pacific Gas and Electric Co. (the “Utility,” and together with PG&E Corporation, the 

“Debtors”) hereby submits this objection to the Motion of Debtors Pursuant to Fed. R. Bankr. P. 

1015(b) for Entry of Order Directing Joint Administration of Chapter 11 Cases [Case No. 19-

30088, ECF No. 5] (the “Motion”).

The Ad Hoc Group does not oppose the joint administration of the Debtors’ chapter 11 

cases for efficiency and procedural purposes. While the Debtors state that “[j]oint administration 

will not adversely affect rights of parties in interest because [the] Motion requests only 

administrative consolidation of the estates for procedural purposes,” and that “each creditor will 

continue to hold its claim against a particular Debtor’s estate . . . .” Motion at 5:14-17, in light of 

recent Ninth Circuit jurisprudence,1 the proposed order should make clear the Debtors’ joint 

administration shall not enable a joint chapter 11 plan for both Debtors to satisfy Bankruptcy 

Code section 1129(a)(1) with an impaired accepting class for only one debtor. Put differently, the 

Ad Hoc Group opposes joint administration unless it is clear that joint administration shall not 

 1 JPMCC 2007-C1 Grasslawn Lodging, LLC v. Transwest Resort Props. (In re Transwest Resort 

Props.), 881 F.3d 724 (9th Cir. 2018).

AD HOC GROUP OF INSTITUTIONAL 

BONDHOLDERS OF PACIFIC GAS AND 

ELECTRIC CO.,

Objector,

-againstPG&E CORPORATION, et al.,

Movants.

Case: 19-30088 Doc# 50 Filed: 01/29/19 Entered: 01/29/19 11:46:02 Page 2 of 5
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AD HOC GROUP’S OBJECTION TO 

DEBTORS’ MOTION DIRECTING JOINT 

ADMINISTRATION

3

convert the requirement of one impaired accepting class per debtor into a requirement of only one 

impaired accepting class per joint plan.

Specifically, the order granting joint administration should include the following 

paragraph: “This Order shall not, for purposes of confirmation of a chapter 11 plan, allow the 

plan proponent to satisfy the requirement of section 1129(a)(10) of title 11 of the United States 

Code with less than one impaired accepting class per debtor in a joint plan for more than one 

debtor.”

The two Debtors have different capital structures and different creditors. It would be 

highly prejudicial to creditors of the Utility if the Debtors were deemed to satisfy Bankruptcy 

Code section 1129(a)(10) by having one accepting impaired class at PG&E Corporation in a joint 

plan, and no accepting classes at the Utility—and vice versa. Accordingly, the inclusion in the 

order of the proposed paragraph is in the best interest of all stakeholders.

WHEREFORE the Ad Hoc Group requests that the Court (a) deny the Motion, or grant it 

only if the order includes the additional paragraph provided above, and (b) grant the Ad Hoc 

Group such other and further relief as is just. 

Dated: January 29, 2019 PROSKAUER ROSE LLP

/s/ Martin J. Bienenstock

Martin J. Bienenstock (pro hac vice pending)

Brian S. Rosen (pro hac vice pending)

Maja Zerjal (pro hac vice pending)

Eleven Times Square

New York, New York 10036-8299

Telephone: (212) 969-3000

Facsimile: (212) 969-2900

- and -

Michael A. Firestein (SBN 110622)

Lary Alan Rappaport (SBN 87614)

Steve Y. Ma (SBN 320997)

2029 Century Park East

Case: 19-30088 Doc# 50 Filed: 01/29/19 Entered: 01/29/19 11:46:02 Page 3 of 5
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AD HOC GROUP’S OBJECTION TO 

DEBTORS’ MOTION DIRECTING JOINT 

ADMINISTRATION

4

Suite 2400

Los Angeles, CA 90067-3010

Telephone: (310) 557-2900

Fax: (310) 557-2193

Attorneys for Ad Hoc Group of Institutional 

Bondholders of Pacific Gas and Electric Co.

Case: 19-30088 Doc# 50 Filed: 01/29/19 Entered: 01/29/19 11:46:02 Page 4 of 5
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CERTIFICATE OF SERVICE

CERTIFICATE OF SERVICE

I hereby certify that on January 29, 2019, I electronically filed the above Objection of Ad 

Hoc Group of Institutional Bondholders to Motion of Debtors Pursuant to Fed. R. Bankr. P. 1015(b) 

for Entry of Order Directing Joint Administration of Chapter 11 Cases with the Clerk of the Court 

using the CM/ECF system, which will send notification of such filing to e-mail addresses on file 

with the Court’s ECF System.

Dated: January 29, 2019. PROSKAUER ROSE LLP

By: Lary Alan Rappaport

Lary Alan Rappaport

Attorneys for Ad Hoc Group of Institutional 

Bondholders of Pacific Gas and Electric Co.

Case: 19-30088 Doc# 50 Filed: 01/29/19 Entered: 01/29/19 11:46:02 Page 5 of 5