The Latest: California gets time on bids to reorganize PG&E
SAN FRANCISCO (AP) — The Latest on Pacific Gas & Electric’s bankruptcy (all times local):
A federal judge has granted a two-week period for California officials to develop a way to evaluate competing bids to restructure Pacific Gas & Electric and pull it out of bankruptcy.
Gov. Gavin Newsom’s administration and state regulators requested the time Wednesday to work with PG&E Corp. and two groups of investors who want to take over the troubled utility.
PG&E filed for bankruptcy amid an estimated $30 billion in liabilities from recent wildfires its equipment may have ignited.
A group of insurers and a group of PG&E bondholders are seeking to end the company’s sole right to file a reorganization plan, asserting they have a better proposal.
State officials said they want to see the best plan for California ratepayers and keep PG&E on track to resolve its bankruptcy case by next June.
Insurance companies that say Pacific Gas & Electric owes them more than $20 billion from wildfire claims want to take over the California utility and pull it out of bankruptcy.
The insurers filed court documents Tuesday to end PG&E’s exclusive right to file a reorganization plan.
They want the right to submit their own plan to wildfire victims and other PG&E creditors.
Their request came ahead of a Wednesday hearing when a bankruptcy judge is expected to consider a request by PG&E bondholders who want to submit a restructuring plan.
PG&E filed for bankruptcy in January to deal with an estimated $30 billion in liabilities from wildfires its equipment may have ignited in 2017 and 2018, including the wildfire in the Northern California town of Paradise and killed 85 people.