Yesterday afternoon, the bondholders group and the official committee representing the fire victims in PG&E’s bankruptcy case announced they had reached a deal. They filed a joint motion with the bankruptcy court to (1) terminate PG&E’s exclusive right to file a reorganization plan and (2) file their own plan of reorganization. Their plan appears to include about $6 billion more in total payments than the PG&E plan, so it would provide more compensation to fire victims. The fire victims and bondholders reached a negotiated number for all claims — fire victims, insurance companies, cities and counties, FEMA, and the CPUC.
The deal is very important because the judge has identified the fire victims as the most important party in the case. The fact they are sponsoring this plan means it will be taken very seriously by the court.
We have not seen PG&E’S reaction yet. Our bankruptcy attorneys are still evaluating the documents and their implications. However, the fire victims/bondholder plan appears to be much more favorable to PG&E employees and retirees than the plan filed by PG&E.
We have established good working relationships with both the fire victim group and the bondholders. We have always had and have a strong relationship with PG&E management. We continue to be guided by what we think is best for our members and retirees.
–Tom Dalzell, IBEW 1245 Business Manager