PG&E files for bankruptcy following California wildfires
Sen. John Hoeven (R-N.D.) discusses how PG&E filed for bankruptcy following the California wildfires and how California lawmakers traveled to Hawaii with utility executives last year, while the wildfires destroyed parts of The Golden State.
PG&E shares surged Monday — the second time in more than a week — after a report said an investor group has offered the embattled utility giant $4 billion to avoid bankruptcy.
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The company was expected to file for Chapter 11 bankruptcy protection this week following the aftermath of both the 2017 and 2018 fires.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| PCG | PG & E CORP. | 12.30 | +0.53 | +4.50% |
However, according to Bloomberg News, those plans may be halted after an unnamed investor group offered the company a $4 billion alternative plan to keep afloat.
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A spokesperson for PG&E did not immediately respond to FOX Business’ request for a comment on the report.
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Yet, last week, PG&E did get some good news as its shares skyrocketed — at one point more than 77 percent — after California investigators cleared the utility giant of blame for a 2017 conflagration known as the Tubbs Fire.
The news came a few days after the California-based power company lined up $5.5 billion to fund its bankruptcy process, which it is rumored to be filing this week.
While investigators with the California Department of Forestry and Fire Protection cleared the embattled company of liability for the Tubbs Fire, it has already determined that the utility’s equipment was liable for at least 17 other major fires that year.
“Regardless of today’s announcement, PG&E still faces extensive litigation, significant potential liabilities and a deteriorating financial situation, which was further impaired by the recent credit agency downgrades to below investment grade,” the company said in a statement last week.
“Resolving the legal liabilities and financial challenges stemming from the 2017 and 2018 wildfires will be enormously complex and will require us to address multiple stakeholder interests, including thousands of wildfire victims and others who have already made claims and likely thousands of others we expect to make claims.”
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Investigators are still determining whether PG&E will be found liable for California’s worst wildfire, the Camp Fire, which killed more than 80 people in November.
