PG&E Wins Court Sign-Off on Fire Deals, Now Faces Governor

  • Bankruptcy judge ruled on deals from the bench during hearing
  • Approval of victim, insurer settlements likely heads off trial
Photographer: David Paul Morris/Bloomberg
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PG&E Corp. won court approval for two multibillion-dollar wildfire settlements that will serve as the centerpiece of the bankrupt utility giant’s restructuring plan. It’s still working on winning over California’s governor.

On Tuesday, the judge overseeing PG&E’s Chapter 11 case signed off on the company’s $13.5 billion plan to compensate victims of catastrophic fires blamed on its equipment and an $11 billion deal to settle claims with insurers and investors. The agreements are key to the San Francisco-based company’s efforts to emerge from the biggest utility bankruptcy in U.S. history by a state-imposed deadline of June 30.