Insurers propose PG&E bankruptcy planPosted On: Jul. 25, 2019 12:55 PM CST
Insurers who say they face more than $20 billion in wildfire claims are proposing their own plan to deal with Pacific Gas & Electric’s bankruptcy.
The proposal submitted Tuesday to the U.S. Bankruptcy Court in San Francisco in In re: PG&E Corp. and Pacific Gas and Electric Co., debtors, proposes seeking to end PG&E’s exclusive right to file a reorganization plan.
PG&E said in a statement it opposes the plan.
Features of the complex plan submitted by the insurers, who have created an “ad hoc group of subornation claim holders,” include converting a portion of the claims into new stock.
The plan “not only incorporates a reasonable settlement of the total value of all subrogation Claims, but also preserves the ability of individual fire victims to assert their claims against a well-funded trust and realize a full recovery on their claims,” says the filing.
A July 1 filing with the court includes a 16-page list of insurers who face PG&E wildfire-related claims.
The deadline for objecting to the plan is Aug. 6, and a Aug. 13 hearing is scheduled.
PG&E, which filed for bankruptcy in January, said in a statement that it “has made significant progress in developing 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.”
“This progress includes the work PG&E has done to resolve major, complex issues that must be addressed before the company can emerge from bankruptcy, including reaching a $1 billion settlement with 18 cities and counties affected by wildfires,” according to the statement.
“Terminating PG&E’s exclusive period less than six months after the commencement of bankruptcy proceedings would increase the potential for a long, drawn-out bankruptcy process and create unnecessary delay that would not be in the interest of PG&E customers, employees, and other stakeholders. We will respond to the Ad Hoc Committee of Subrogation Claim Holders within the schedule established by the court.”