January 14, 2019
San Francisco-based PG&E Corp. plans to file for bankruptcy later this month, primarily as a result of billions of dollars in potential liability stemming from the recent California wildfires. The company said early Monday it provided the 15-day advance notice required by a recently-enacted California law that it and its wholly-owned subsidiary, Pacific Gas and Electric Company, currently intend to file petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code on or about January 29, 2019.
John R. Simon, PG&E Corp. Interim CEO said, “We believe a court-supervised process under Chapter 11 will best enable PG&E to resolve its potential liabilities in an orderly, fair and expeditious fashion. We expect this process also will enable PG&E to access the capital and resources we need to continue providing our customers with safe service and investing in our systems and infrastructure.”
Over the weekend, the power company’s chief executive Geisha Williams resigned. PG&E is working to line up a $5.5-billion financing package, which would allow the company to continue operating during the bankruptcy process.
California fire investigators say the utility’s power lines were responsible for causing a number of wildfires in October 2017. Analysts estimate PG&E could face some $30 billion in liability resulting from the fires.
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