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U.S. court grants PG&E sole rights to craft bankruptcy exit plan

Christian Fernsby |
A U.S. federal judge rejected Friday a motion by a group of creditors to propose competing plans for PG&E Corporation, and gave the Californian power company sole rights to craft a bankruptcy exit plan.

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Topics: U.S.    BANKRUPTCY   

Judge Dennis Montali of San Francisco-based U.S. Bankruptcy Court turned down requests from Pacific Investment Management Co. and Elliott Management Corp., which intend to propose a Chapter 11 exit plan.

The judge required the two creditors to wait until PG&E submits its own plan to address the liabilities of more than 30 billion U.S. dollars claimed by victims of a deadly wildfire in 2017.

PG&E has agreed to file its own reorganization plan by Sept. 9, a little earlier than the exclusive protection period granted by the U.S. bankruptcy law.

Montali said he believes that the court's ruling in PG&E's favor would help speed up the settlement of claims by the wildfire victims.

In 2017, a deadly wildfire known as Tubbs Fire killed 22 people and destroyed more than 5,000 homes in the Santa Rosa area of North California.

After victims sued PG&E for causing the fatal wildfire with its power lines, the company, which serves nearly 16 million people in Northern and Central California, filed for bankruptcy protection in January 2019.

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