The utility company's stock prices plunged 55 percent in early trading.
Assure the Company has access to the capital and resources necessary to support ongoing operations and enable PG&E to continue investing in its systems, infrastructure and critical safety efforts, including investing in its Community Wildfire Safety Program, an additional precautionary safety measure implemented following the 2017 Northern California wildfires to further reduce wildfire risk.
PG&E is reeling from the November Camp fire that swept through the California mountain community of Paradise and killed at least 86 people in the deadliest and most destructive blaze in state history.
PG&E is the subject of enormous litigation and liabilities estimated which could reach as high as $30 billion, analysts who studied the 2018 California wildfires say.
Reuters reported that PG&E has opened discussions with its lenders about a financing package, which would help navigate bankruptcy proceedings.
Advisers said they expect it may take up to two years for the company to emerge from bankruptcy.
California utility company Pacific Gas & Electric on Monday morning that it will move forward in filing for Chapter 11 bankruptcy. It said on January 3 it was reviewing its structural options and looking for new directors with safety experience.
PG&E, which serves 15 million Californians - nearly 40% of the population of the state - warned then it could face "significant liability" beyond its insured amount if its equipment was found to have caused the fire.
"On behalf of the Board, I want to thank Geisha for her service and her tireless commitment to our employees and the 16 million Californians we serve", said Richard C. Kelly, Chair of the Board of PG&E Corporation, in a statement.
The company was acting under a new state law requiring it to tell employees at least 15 days before a change of control in the company - including a bankruptcy filing.