Mar 20, 2020 - Economy

PG&E reaches bankruptcy deal with California

Orion Rummler

The Pacific Gas & Electric logo on a truck in Jan. 2019 in San Francisco, California. Photo: Justin Sullivan/Getty Images

Pacific Gas & Electric (PG&E) on Friday struck a deal, pledging to help wildfire victims and improve safety in order to emerge from bankruptcy, the New York Times reports.

Catch up quick: PG&E filed for Chapter 11 bankruptcy last January, facing an estimated $30 billion in claims over its potential role in deadly wildfires across the state, and in December agreed to a $13.5 billion settlement with California wildfire victims.

PG&E will not pay dividends to shareholders under the deal for three years, saving roughly $4 billion, according to calculations by the California governor’s office cited by the Times.
PG&E should be able to exit bankruptcy by June 30 under this deal.

What they're saying:

“Through California’s unprecedented intervention in the bankruptcy, we secured a totally transformed board and leadership structure for the company, real accountability tools to ensure safety and reliability and billions more in contributions from shareholders to ensure safety upgrades are achieved.”

— California Gov. Gavin Newsom

What's next, per the NYT: "A federal judge still needs to approve the company’s bankruptcy plan, but the agreement with Governor Newsom makes the approval much more likely."

Go deeper: PG&E bankruptcy judge sides with fire victims in liability challenge

Add Axios on Google

PG&E reaches bankruptcy deal with California

What to read next