POST Online Media Lite Edition


Pacific Gas and Electric emerges from Chapter 11 bankruptcy

Christian Fernsby |
Pacific Gas and Electric said it had emerged from bankruptcy, marking an end to a long-drawn restructuring process which began after its equipment sparked some of the deadliest wildfires in California.

Article continues below


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.

What to read next

Pacific Gas and Electric will have to pay billions for wildfires
California Governor Newsom: Pacific Gas and Electric needs better board
Aegean Marine files for Chapter 11