NewsCovering California


Market Tumult Threatens PG&E Deal with Wildfire Victims

Posted at 11:43 AM, Apr 07, 2020
and last updated 2020-04-07 14:43:00-04

BERKELEY, Calif. — Lawyers who negotiated a crucial $13.5 billion deal for the victims of deadly wildfires caused by Pacific Gas & Electric equipment are expressing serious doubts about whether the nation's largest utility will be able to pay the full amount as the economy sinks toward a recession.

The red flag raised in court documents filed Monday threatens to derail PG&E's plan to emerge from bankruptcy this summer. The concerns center on the recent stock market tumult triggered by the coronavirus that has dramatically shifted the financial landscape.

PG&E struck its $13.5 billion settlement with wildfire victims in December.