PG&E Corporation

I. INTRODUCTION

21 On December 11, 2019, the court heard oral argument on the 22 discrete legal issue of the applicable postpetition interest to 23 be paid to four classes of allowed unsecured and unimpaired 24 claims, under any chapter 11 reorganization plan for solvent 25 debtors PG&E Corporation and Pacific Gas and Electric Company 26 (“Debtors”). The Debtors, joined by certain Shareholders, argue 27 that creditors in all four classes should receive interest 28 calculated pursuant to 28 U.S.C. § 1961(a) (the “Federal Interest Rate”) in effect as of the petition date (January 29, 2019) these chapter 11 cases. That rate for these jointly administered cases is 2.59 percent. Debtors contend that use of the Federal Interest Rate is consistent with In re Cardelucci, 285 F.3d 1231 (9th Cir. 2002) (“Cardelucci”), which holds that unsecured creditors in a solvent case should receive postpetition interest calculated at the Federal Interest Rate. Several parties, including the Official Committee of Unsecured Creditors, the Ad Hoc Committee of Senior Unsecured Noteholders, the Ad Hoc Committee of Holders of Trade Claims and others…