ML023100317

Declaration of Paul S. Aronzon in Support of Motion of the Official Committee of Unsecured Creditors for Authority to Incur Plan Implementation Expenses and Ex Parte Application for Order Shortening Time for Hearing Thereon

ML023100317
Person / Time
Site:	Diablo Canyon
Issue date:	10/28/2002
From:	Aronzon P Milbank, Tweed, Hadley & McCloy, LLP, Official Committee of Unsecured Creditors
To:	Office of Nuclear Reactor Regulation, US Federal Judiciary, Bankruptcy Court, Northern District of California
References
01-30923 DM, 94-0742640
Download: ML023100317 (4)

Text

1 PAUL S. ARONZON, SBN 88781 ROBERT JAY MOORE, SBN 77498 2 MICHAEL I. SOROCHINSKY, SBN 166708 MILBANK, TWEED, HADLEY & McCLOY LLP 3 601 South Figueroa Street, 3 0 th Floor Los Angeles, California 90017 4 Telephone: (213) 892-4000 Facsimile: (213) 629-5063 5

Attorneys for Official Committee of Unsecured Creditors 6

7 8 UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF CALIFORNIA 9 SAN FRANCISCO DIVISION 10 In re Case No. 01-30923 DM 11 PACIFIC GAS AND ELECTRIC COMPANY, Chapter 11 Case a California corporation, 12 Debtor. Date: November 8, 2002 13 Time: 1:30 p.m. d Federal I.D. No. 94-0742640 Place: 235 Pine Street, 22 Floor, 14 San Francisco, California 15 DECLARATION OF PAUL S. ARONZON IN SUPPORT OF MOTION OF THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS FOR AUTHORITY TO 16 INCUR PLAN IMPLEMENTATION EXPENSES AND EX PARTE APPLICATION FOR ORDER SHORTENING TIME FOR HEARING THEREON 17 18 19 20 21 22 23 24 25 26 27

1. 1I 28 LAI #6248364vl Declaration of Paul S. Aronzon in Support of Motion for Authority to Incur Expenses and Ex Parte Application

1 1, Paul S. Aronzon, declare:

2 1. I am a partner at Milbank, Tweed, Hadley & McCloy ("Milbank"),

3 counsel to the Official Committee of Unsecured Creditors (the "Committee") in the Pacific Gas 4 and Electric Company ("PG&E") chapter 11 bankruptcy case (the "Case"). I am one of the 5 partners at Milbank primarily responsible for the representation of the Committee in the Case. I 6 have personal knowledge of the facts set forth below, and if called upon, I could and would 7 testify competently with regard thereto. I make this declaration in support of the Motion of the 8 Official Committee of Unsecured Creditors for Authority to Incur Plan Implementation Expenses 9 (the "Motion") and the Ex Parte Application of the Official Committee of Unsecured Creditors 10 for Order Shortening Timefor Hearing on Motion of the Official Committee of Unsecured 11 Creditors for Authority to Incur Plan Implementation Expenses (the "Application"). The 12 Application and Motion are filed concurrently herewith.

13 2. There have been no previous time modification requests related to the 14 Motion. On October 25, 2002, counsel for the Committee spoke with Patricia Cutler of the 15 Office of the United States Trustee notifying her that the Committee would be filing the Motion, 16 and intended to file the Application on October 28, 2002, seeking to have the Motion heard on 17 either November 5, 2002 at 9:30 a.m. or on November 8, 2002 at 1:30 p.m. At that time, Ms.

18 Cutler stated that she had no objection to the Application. In the morning of October 29, 2002, 19 counsel for the Committee left a message for Ms. Cutler, advising her that the Application would 20 instead be filed on October 29, 2002, and that the Committee would request a hearing on the 21 Application during the week of October 28, 2002. As of noon on October 29, 2002, counsel for 22 the Committee heard no response from Ms. Cutler. On October 25, 2002, counsel for the 23 Committee spoke with James Lopes, counsel for PG&E, and notified him that the Committee 24 would be filing the Motion, and intended to file the Application on October 28, 2002, seeking to 25 have the Motion heard on either November 5, 2002 at 9:30 a.m. or on November 8, 2002 at 1:30 26 p.m. Mr. Lopes indicated that he would oppose the Application. On October 29, 2002, counsel 27 for the Committee advised Mr. Lopes that the Application would instead be filed on October 29, 28 2002, and that the Committee would request a hearing at some time during the week of October LAI #6248364vl Declaration of Paul S. Aronzon in Support of Motion for Authority to Incur Expenses and Ex Parte Application

1 28,2002.

2 3. The Committee and the California Public Utilities Commission have 3 contacted Standard and Poors ("S&P") to issue an indicative ratings letter (the "Ratings Letter")

4 with respect to debt and equity securities that will be issued under the Amended Plan of 5 Reorganization for PG&E filed by the Committee and the California Public Utilities Commission 6 (the "Committee/CPUC Plan"). Obtaining the Ratings Letter is an important step prior to 7 issuance of the securities and will be helpful to the confirmation and implementation of the 8 Committee/CPUC Plan.

9 4. S&P has stated that its fee for the Ratings Letter is $250,000. Of this 10 amount, $125,000 would be immediately payable to S&P as an initial deposit. Upon receipt of 11 this initial payment, S&P would commence work on the Ratings Letter. S&P has stated that 12 the Ratings Letter would be issued within not more than thirty (30) days after receiving the 13 initial payment. Upon issuance of the Ratings Letter, the remaining $125,000 would become 14 due.

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LAI #6248364vl

-3 Declaration of Paul S. Aronzon in Support of Motion for Authority to Incur Expenses and Ex Parte Application

1 I declare under penalty of perjury under the laws of the United States of America 2 that the foregoing is true and correct.

3 Executed this 28th day of October, 2002 at Los Angeles, California.

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Paul S. Ardnzon 6

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-4 Declaration of Paul S. Aronzon in Support of Motion for Authority to Incur Expenses and Ex Parte Application