PG&E to declare bankruptcy

PG&E to declare bankruptcy

PG&E to declare bankruptcy

PG&E, which is the owner of the biggest U.S. power utility by customers, has said it is preparing to file for Chapter 11 bankruptcy protection as soon as this month amid pressure from potentially crushing liabilities linked to California's catastrophic wildfires in 2017 and 2018.

PG&E said Monday it has given the required 15-day advance notice that it plans to file for bankruptcy protection. We believe John is the right interim leader for the company while we work to identify a new CEO. Additionally, the utility's CEO Geisha Williams resigned.

The California Department of Forestry and Fire Protection, or Cal Fire, has determined that PG&E equipment ignited 17 of the wildfires that tore through Northern California in 2017. State investigators found PG&E; lines were responsible for igniting 18 wildfires in October 2017, and are still probing whether the utility's equipment caused the devastating Camp Fire past year. More than 100 people died in the fires. It has access to about $1.5 billion in existing cash.

As of this afternoon, PG&E stock was down almost 50 percent. The bonds are the most actively traded this morning across all ratings, according to Trace.

The company's deepening financial crisis has forced California regulators and policy makers to consider a bailout package and PG&E.

"I thought keeping the company in business would be better for customers and even creditors", he said.

California Gov. Gavin Newsom said in a statement to KTVU the company should continue to "honor promises made to energy suppliers and to our community". We expect this process also will enable PG&E to access the capital and resources we need to continue providing our customers with safe service and investing in our systems and infrastructure.


The energy utility has also assured customers that services will continue as normal. Some banks are taking a long look at a potential $2 billion debt financing for the Geysers, the world's largest geothermal complex, because it supplies the utility, people familiar with the matter also said last week.

Williams was CEO for less than two years, but she had been with PG&E since 2007. The company's CEO announced she was stepping down yesterday.

PG&E's chief executive officer was replaced on Sunday by General Counsel John Simon on an interim basis. "I value the opportunity I've had to lead PG&E and wish all of my colleagues well".

The company does not expect bankruptcy to interfere with providing its customers with power and other services, the company said in a statement Monday.

PG&E has come under intense scrutiny following the devastating wildfires in California after it emerged that some of its equipment may have sparked the blazes. It is the deadliest and most destructive wildfire to have occurred in the state.

While state lawmakers rejected PG&E's request to change wildfire liability law, they did pass legislation in August that will help PG&E pay for lawsuits arising from the wine country fires.

This includes California's deadliest fire on record which killed 86 people and destroyed around 14,000 homes.

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