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PG&E emerges from Chapter 11 bankruptcy

Posted at 1:19 PM, Jul 02, 2020

PG&E announced Wednesday it has emerged from Chapter 11 bankruptcy.

The utility company said it has completed its restructuring process and implemented its Plan of Reorganization.

PG&E has implemented all negotiated settlements of wildfire claims pursuant to the plan.

The company has also now funded $5.4 billion to the Fire Victim Trust established to satisfy the claims of individual wildfire victims. Another $1.35 billion will be added to the fund in two installments in 2021 and 2022.

PG&E has also funded $1 billion to satisfy the wildfire claims of specific cities and counties. The company is also paying an additional $11 billion settlement to insurance companies that paid recent wildfire claims.

As part of the emergence from Chapter 11, PG&E will participate in California's go-forward wildfire fund. On July 1, PG&E contributed its first annual contribution to the fund of $5 billion.

PG&E's new Board of Directors is officially in place and Interim CEO Bill Smith took over July 1.

The utility company is also vowing to move forward with commitments regarding its governance, operations and financial structure to prioritize safety.