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Insurers offer competing plan to rescue PG&E from bankruptcy

Posted at 10:03 AM, Jul 24, 2019
and last updated 2019-07-24 23:26:02-04

SAN FRANCISCO (AP) – Insurance companies that say Pacific Gas & Electric owes them more than $20 billion from wildfire claims want to take over the California utility and pull it out of bankruptcy.

The insurers filed court documents Tuesday to end PG&E’s exclusive right to file a reorganization plan.

They want the right to submit their own plan to wildfire victims and other PG&E creditors.

Their request came ahead of a Wednesday hearing when a bankruptcy judge is expected to consider a request by PG&E bondholders who want to submit a restructuring plan.

PG&E filed for bankruptcy in January to deal with an estimated $30 billion in liabilities from wildfires its equipment may have ignited in 2017 and 2018, including the wildfire in the Northern California town of Paradise and killed 85 people.

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