PG&E reaches bankruptcy deal with California
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."