Climate Changed
PG&E Enters Bankruptcy Setting Stage for Major Restructuring
- Utility may be legally liable for fires even if not negligent
- Filing marks second time PG&E sought protection from creditors
This article is for subscribers only.
A series of wildfires that left more than 100 people dead and destroyed an entire Northern California town has now created the biggest utility bankruptcy in U.S. history: PG&E Corp. filed for Chapter 11 protection early Tuesday morning.
Not even last-minute rescue packages proposed by some of the biggest names in the investment world -- including Elliott Management Corp. and Apollo Global Management LLC -- and California’s assurances that it would work to address fire-liability policies could stop the state’s largest utility owner from declaring bankruptcy. PG&E listed $51.7 billion in total debts, according to filings made in bankruptcy court. It estimated $30 billion in potential wildfire liabilities.