by Katy Grimes
As Appearing in the California Globe
What about the bondholders’ $35 billion offer?
California Gov. Gavin Newsom announced Friday he is rejecting a $13.5 billion settlement that Pacific Gas & Electric made just last week with wildfires victims from 2017 and 2018. Thousands of people lost homes and businesses in the Camp Fire, and the wine country fires in Sonoma and Napa, which forced the giant utility into bankruptcy.
“PG&E’s board of directors and management have a responsibility to immediately develop a feasible plan,” the governor said. “Anything else is irresponsible, a breach of fiduciary duties, and a clear violation of the public trust.”
Newsom’s letter to PG&E CEO William D. Johnson may appear at first blush to be a setback leading up to the June 30 deadline for the utility to emerge from bankruptcy protection.
However, as California Globe reported last week, PIMCO and Elliott Management proposed a $35 billion plan earlier in the year, to facilitate PG&E’s emergence from bankruptcy within the year, according to sources familiar with the the company and case.