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California seeks quick fix to utility bankruptcy

Posted at 1:40 PM, Nov 01, 2019
and last updated 2019-11-01 16:40:42-04

SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom wants to speed up the troubled Pacific Gas & Electric bankruptcy case so the company can be restructured in time for next year's wildfire season.

Newsom announced Friday he is calling a meeting of wildfire victims and PG&E executives, shareholders and creditors next week to accelerate what Newsom called "a consensual resolution" to the bankruptcy case.

Shareholders and creditors are battling for control of the company and have put forth competing plans for the utility to emerge from bankruptcy.

PG&E filed for bankruptcy earlier this year after a 2018 wildfire mostly destroyed the town of Paradise and killed 85 people.

The utility is facing up to $30 billion in potential damages from recent fires that were started by its equipment.