U.S. Bankruptcy Judge Dennis Montali has agreed to let PG&E set up a $105 million fund to help fund the victims of fires it caused in 2017 and 2018. The fund is for people who lost homes and were uninsured, or have used up — or soon will — their insurance.
These homeowners are fighting for PG&E funds along with other creditors. The judge said he wants to see this fund up and running quickly. He also wants the company and the unsecured creditors to try to agree on an administrator for the fund.
“I’ll make sure the process moves forward quickly,” Montali said.
The money for the fund will come from available cash. It’s not enough according to the lawyers representing wildfire victims. They wanted $250 million or more. The judge said he had no choice but to either accept or reject PG&E’s proposal. He could not — by law — modify the request.
Montali approved extensions of four months for the firm’s unsecured creditors instead of the six-months PG&E wanted. California Governor Gavin Newsom wants the extensions to be done within 75 days instead. Wildfire victims say the company has had enough extensions and that it is stalling.
The point is to make sure PG&E gets the claims settled and a reorganization plan done.
The company filed Chapter 11 bankruptcy in January of this year because of $30 billion in debt — with more likely coming — for the wildfires its equipment caused.
Source links: Reuters, Carrier Management