PG&E calls bankruptcy ‘only viable option’ in California wildfire crisis
The embattled utility gave 15-day notice of its intent to file for protection under Chapter 11 of the bankruptcy code, as required by a state law enacted last fall to deal with utility fire liabilities. The company made the announcement less than 12 hours after announcing the resignation of its CEO,
"We believe a court-supervised process under Chapter 11 will best enable
In a filing with the
The company's debt was downgraded to junk-bond status by
Still, company officials insisted they will use the Chapter 11 process to steer
"
He said the Chapter 11 filing will stabilize the company's finances and enable it to invest in wildfire-safety programs announced in recent months.
The first tangible financial impact of
Williams, the former CEO, will collect roughly
The company is facing other pressures, including a federal judge's threat to order
Gov.
"What comes out of the bankruptcy is quite likely not to bear any resemblance to the company that went in," Geesman said.
The company could sell off some assets for cash, he said. Published reports say
In any event, Geesman said "this is the beginning of what is likely to be a very lengthy process. It is easy to go in, but it is hard to come out."
The Chapter 11 filing, the second in the company's history, will allow
State Sen.
In recent weeks
Bankruptcy creates immediate complications, meanwhile, for the scores of wildfire survivors who are suing
Malnight, the senior vice president, said "there are many stakeholder interests that are going to need to be balanced through the bankruptcy process -- customers, the claimants and the victims from the wildfires, our other creditors, suppliers, employees and the state. The Chapter 11 process provides a single forum where we can work together."
In its
The company also notes that several
That would bring up another concern for
"We really have to make sure that who they sell it to is experienced (and) has a good track record in operating gas pipeline systems in a safe manner," Toney said. "We don't want to see venture capital firms buying it or parties that don't have experience and aren't going to put the public interest first."
State legislators from both political parties Monday issued statements taking a tough stance on
California
"This is a critical concern for
Republican Assemblyman
"
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