PG&E scored a big victory this week (8/16) as U.S. Bankruptcy Judge Dennis Montali ruled that the utility should hold on to sole rights to develop a Chapter 11 bankruptcy exit plan.
In making his ruling, Judge Montali rejected requests from two groups of creditors who have proposed billions of dollars in financial commitments to back their own Chapter 11 exit proposals for PG&E (details previously outlined in previous reports).
Montali wrote that although the bids were tempting, opening the door for competing restructuring plans would lead to an expensive and lengthy process that could have little or nothing to do with compensating the victims of the “enormous and unimaginable tragedies.”
PG&E earlier this week outlined a Chapter 11 exit strategy to be filed by September 9, 2019, in a bid to keep the company’s fate in its own hands, arguing it needed to keep control to head off a bankruptcy court brawl among rival plan proponents that would delay the proceedings.
Reacting to the decision, PG&E issued the following statement:
“PG&E has made significant progress in further refining a viable, fair, and comprehensive plan of reorganization that will compensate wildfire victims, protect customer rates, and put PG&E on a path to be the energy company our customers need and deserve.”
Montali agreed, citing the need to speed the bankruptcy case along and to get money to fire victims.