Judge: Court Will Consider Rival Proposal for PG&E Reorganization
The post Judge: Court Will Consider Rival Proposal for PG&E Reorganization appeared first on POWER Magazine.
A federal bankruptcy judge on Oct. 9 ruled that Pacific Gas & Electric (PG&E), California’s largest utility, does not have the sole right to determine the terms of its reorganization. Judge Dennis Montali said those who support a rival proposal, which was devised by a group of the utility’s creditors, can have their plan considered.
The decision could have major consequences for the utility’s customers. PG&E filed for bankruptcy protection in January, with the company saying it faced $ 30 billion or more in liabilities related to wildfires in California that caused massive property damage and left dozens dead.
Montali ruled that the court can look at a reorganization plan created by a group of PG&E creditors that includes prominent hedge funds. The plan also is backed by individuals who have claims against the utility for wildfire damage.
Montali’s ruling Wednesday came after a court hearing on Monday in San Francisco.…