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Bloomberg
Bankrupt utility giant PG&E Corp has removed from its $13.5 billion settlement with wildfire victims the requirement that California Governor Gavin Newsom sign off on its restructuring plan.
PG&E reached an agreement with representatives of the victims of fires ignited by its equipment to eliminate the provision after Newsom said last week that the power company’s proposed reorganisation plan doesn’t comply with state law.
San Francisco-based PG&E announced the decision, less than a day before it was required by the fire victims deal to respond to Newsom’s rejection and address his concerns. The governor had described the utility’s restructuring plan as falling “woefully short†and called for an entirely new board and a better financing structure, among other things. Newsom’s office didn’t immediately return a request for comment.
Killing the clause buys PG&E more time to shape a restructuring plan around the settlement with wildfire victims, which has emerged as the main obstacle to its exit from the biggest utility bankruptcy in US history. The settlement is scheduled for a hearing on Tuesday in bankruptcy court.