A federal judge in San Francisco will hear plans Wednesday from a group of PG&E bondholders who are competing with insurers for the right to take over the utility company and pull it out of bankruptcy.
Insurers want to end PG&E’s exclusive right to file a reorganization plan after the company filed for bankruptcy in January with an estimated $30 billion in liabilities from wildfires between 2017 and 2018. Under their plan they would convert the nearly $20 billion in wildfire loss claims into new stock, giving them a large share of the company and establishing a "well-funded" trust for victims.
PG&E bondholders will request permission from a federal judge Wednesday to submit their reorganization plan. They seek to invest more than $30 billion, with $16 billion set aside for wildfire victims.
PG&E claimed it has made significant progress toward reorganization of the company. The company, which has resisted giving up exclusive rights, claimed it will compensate wildfire victims and protect customer rates and has until Sept. 26 to submit reorganization plans.