Alvarez & Marsal

With its non-regulated energy subsidiary facing a massive debt load ($6 billion) and
a likely Chapter 11 filing, PG&E Corporation hired Alvarez & Marsal to lead a major
restructuring effort and fill management gaps in the beleaguered company. Initially
assuming the role of Chief Restructuring Advisor, Alvarez & Marsal later was promoted
to Chief Executive Officer, Chairman of the Board and Chief Financial Officer of the
subsidiary, which became known as National Energy & Gas Transmission, Inc. (NEGT).
The experienced team worked to develop and implement a complex reorganization plan
designed to maximize value, reduce costs, improve operations, boost corporate governance
and separate NEGT from its parent. Following out-of-court negotiations with creditors,
Alvarez & Marsal concluded that a Chapter 11 filing and subsequent sale process of
major assets, including several independent power plants and natural gas pipelines, would
yield the best outcome for creditors. Within a year of the bankruptcy filing, the plan for
reorganization won court approval – with asset sale values substantially exceeding the
expectations of all involved.