PG&E Plunges as It Races to Meet Governor Bankruptcy Demand
- Utility has until Tuesday to address concerns over proposal
- Newsom calls current plan ‘woefully short’ of what’s needed
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PG&E Corp. shares plummeted after California Governor Gavin Newsom rejected its bankruptcy restructuring plan, forcing the company to make sweeping changes to meet his demands.
The state’s largest power company has until Tuesday to address conditions that Newsom laid out in a letter late last week rejecting its reorganization proposal. The governor said the current plan falls “woefully short” of meeting requirements of a key state law and insisted on changes that could reshape PG&E, including an entirely new board and the option for a takeover.