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00:00We've been hoping to have this conversation for a long time . You've made so much progress as one of the lead investors in Jeannie's restructuring . I wonder could it all unravel because of the coronavirus pandemic and the impact it's having on credit markets . Well it's a good question but thankfully the company worked hard to secure all of its financing. Going back over the course of the last number of months both from banks as well as a supportive group of bond holders that were willing to lock in financing for the company so that it would have that portion of the bankruptcy really secured. And that coupled with an equity backstop from a group of shareholders and other interested parties has allowed the company to have certainty to achieve exit once two remaining important pieces of the case are resolved first. The approval of the CPC in California for the company's restructuring plan and its go forward operational plan as well as the vote from the victims saying that they approve their treatment in the plan. So those are the two last pieces of the puzzle and both appear to be well on track. I definitely want to get to that question about the wildfire victims. But before I do time it was my understanding and I could be wrong that some of the financing still needs to be put in place. And there are some deadlines for that in August September maybe and the end of the year . So that the deadlines that you're referring to I believe relate to exiting from bankruptcy meaning finalizing the company's exit in order to satisfy the victims trust. By August they have a right but not an obligation to walk away from their deal if we're unable to secure the exit before late August. The governor's office would like to see the company emerge from bankruptcy by the end of December. But in both cases the financing that needs to be secured is really converting bridge financing for a small portion of the company's capital structure from the banks into more permanent financing. But certainly the company could exit with a big bridge financing and then finance that out at a point in time later. I think looking at the utility sector writ large that portion of our market has calmed down quite significantly quite significantly over the course of the last few weeks. If we look back to what a lot of these deals were cut lat late last fall. The S & P has declined rather precipitously but the utility index over that period of time is only down about 7 percent. If we look from sort of November 1st forward so we've seen a great deal of recovery in that sector . And the financing markets are certainly open for investment grade rated bonds as we've all seen recently .

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PG&E Bankruptcy Exit 'on Track' Despite Virus, Knighthead's Wagner Says

Knighthead Capital Management co-founder Thomas Wagner says it is unlikely that the coronavirus pandemic will affect PG&E Corp.'s exit from bankruptcy. He speaks during an interview with Bloomberg's Erik Schatzker on "Bloomberg Daybreak: Americas." (Source: Bloomberg)