California utility PG&E files for bankruptcy protection
California’s largest utility PG&E filed for Chapter 11 bankruptcy protection Tuesday, expecting to face liability costs from its potential role in deadly wildfires across the state. The filing marks a significant milestone for corporations being forced to reckon with the consequences of climate change.
The backdrop: The company said it planned to file for bankruptcy protection earlier this month. Over the last few weeks, it maintained that the filing was necessary despite being cleared of fault for the 2017 Tubbs wildfire, which would lower potential liability costs. It also faced threats of a proxy battle from major shareholder BlueMountain Capital Management and a $4 billion proposal from a consortium of investors to help the company remain solvent. PG&E asked the court for access to the $5 billion debtor-in-possession financing to keep up services throughout the bankruptcy process.