Final certification isn’t until May 22. But preliminary voting results show a strong majority in favor of PG&E Corp’s (PCG) restructuring plan, allowing the California utility to exit the bankruptcy it entered in January 2019.
The “in favor” column apparently includes victims of the 2018 Camp Fire. Under the state’s doctrine of “inverse condemnation,” PG&E is insurer of last resort for damages from wildfires in which its equipment plays a role. The company’s primary reason for filing Chapter 11 was financial protection from the historic cost in lives and property from the fire, until a deal could be worked out.
The road to the current agreement took many twists and turns, including battling a court-approved counter proposal from an investor group led by Elliott Management. But in the end, PG&E devised a compromise that almost everyone is willing to live with, even if they’re not entirely satisfied. That includes California Governor Gavin Newsom, who aggressively pushed for a relatively quick restructuring.