Pacific Gas and Electric emerges from Chapter 11 bankruptcy
Topics: PACIFIC GAS AND ELECTRIC
The completion of bankruptcy proceedings sets up the embattled company to tap a state-backed fund that would help power utilities cushion hits from wildfires.
Pacific Gas and Electric said it deposited about $5 billion in the wildfire fund.
The company also said it will fund the wildfire victims trust with $5.4 billion in cash and common stock representing a 22.19% stake in the reorganized firm.
The utility had a tumultuous time since filing for bankruptcy protection in January last year, with California Governor Gavin Newsom raising concerns about the reorganization plan as well as a state regulator asking for governance and oversight changes to its plan.
The company, in June, also pleaded guilty to 84 counts of involuntary manslaughter stemming from a devastating 2018 wildfire in Northern California touched off by the utility company’s power lines. ■