PG&E Victims Lawyers’ Squabble Could Slow Bankruptcy Exit
- Lawyers clash over whether to push for better settlement
- California utility racing to win approval of reorganization
Embers burn on a property during the Kincade fire in Healdsburg, California in 2019.
Photographer: Phil Pacheco/BloombergThis article is for subscribers only.
PG&E Corp.’s glide toward approval of its bankruptcy plan has hit new turbulence, with lawyers for fire victims clashing over whether to push for a better settlement because the risk of being compensated with stock has ballooned.
Attorneys for the official committee of fire victims in PG&E’s bankruptcy want the power company to guarantee the value of the half of the $13.5 billion settlement to be paid through new shares of stock. Otherwise, they contend the deal’s value will shrink as a result of the market downturn caused by the coronavirus pandemic.