NewsCalifornia News

Actions

PG&E clears another bankruptcy hurdle with debt refinancing

Posted at 11:41 AM, Feb 04, 2020
and last updated 2020-02-04 14:41:47-05

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.

PG&E now appears to be well positioned to emerge from bankruptcy by June 30 if it can overcome staunch opposition from California Gov. Newsom to 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.