by Katy Grimes
As Appearing in the California Globe
Future debt expected for infrastructure, on top of settlements, so power outages and blackouts do not become the new normal
PG&E Corporation announced late Friday a proposed agreement to resolve all claims and pay wildfire victims of the 2018 Camp Fire in Paradise, and the October 2017 wine country fires in Northern California. The deal is expected to boost the utility shareholders’ position as it tries to stave off a bondholders takeover, as well as local governments’ proposals.
However, it is still up to the bankruptcy judge to side with the equity shareholders, who are attempting to hold on to control of PG&E, or the bond holders who are offering to pay off all current and future debt.
If approved by the bankruptcy court, Friday’s proposed deal will pay $13.5 billion to victims of the Camp Fire, and the wine country fires in Sonoma and Napa.
“Since making a Chapter 11 filing in January, PG&E has become the target of investors wrestling for control over the company’s incoming board and chief executive officer,” Bloomberg reported in March. “The company is facing liabilities that may exceed $30 billion from wildfires its equipment may have caused. Its bankruptcy case, the biggest for a utility in U.S. history, is expected to be contentious and complex as creditors, shareholders, wildfire victims and state officials weigh in on the remake of the power giant.”
