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PG&E clears another bankruptcy hurdle

Posted at 2:22 PM, Feb 05, 2020

SAN FRANCISCO (AP) - A federal judge has approved a settlement that moves Pacific Gas & Electric closer to getting out of bankruptcy.

The company cleared its latest hurdle Tuesday when U.S. Bankruptcy Judge Dennis Montali signed off on a deal to refinance billions of dollars in debt to pay off PG&E bondholders who threatened to cause problems.

If the utility can overcome staunch opposition from California Gov. Newsom, PG&E appears to be well-positioned to emerge from bankruptcy by the June 30 deadline for the state to either approve or reject its plan.

PG&E has also negotiated more than $25 billion in settlements with homeowners, businesses, insurers and government agencies that claimed more than $50 billion in fire losses.