March 16 (Reuters) - Power producer PG&E Corp won bankruptcy court approval to use up to $23 billion in financing after California Governor Gavin Newsom dropped his opposition, Bloomberg News reported here on Monday.
According to the report, U.S. Bankruptcy Judge Dennis Montali said he will approve a financing motion for $11 billion in debt commitments and $9 billion in new equity that will support PG&E’s turnaround plan.
The company can also raise an additional $3 billion through new shares under the plan, the report said.
PG&E last month said it plans to raise up to $25.68 billion by selling securities, as it tries to wriggle its way out of the bankruptcy process and bounce back from the negative publicity after its equipment in California was blamed for the deadly wildfires.
The company, which filed for Chapter 11 protection in January last year, faced opposition from the governor for its restructuring plan.
Last month, PG&E submitted an updated reorganization plan including a new board of directors and new roles aimed at addressing concerns raised by Newsom.
The court approval clears an obstacle for PG&E to work its way out of the bankruptcy process, the report said.
The San Francisco, California-based company needs to exit bankruptcy by June 30 to participate in a state-backed fund that would help power utilities cushion the hit from wildfires.
PG&E did not immediately respond to a Reuters request for comment.
Reporting by Manojna Maddipatla in Bengaluru; Editing by Arun Koyyur