On Tuesday, the power provider PG&E Corporation has filed for Chapter 11 bankruptcy protection case, surrendering to liabilities originating from the wildfires during 2017 and 2017 in Northern California.
The biggest owner of the US power utility has filed a motion aiming that the court sanctions $5.5 billion debtors in possession financing, this was reported in a statement.
During this process, we are entirely dedicated to improve the wildlife safety measures and also help in repairing and reconstructing measures across the communities who are affected by the destruction of the wildfire of Northern California. The interim Chief Executive Officer of PG&E John Simon mentioned.
The company further stated that we wish to pay suppliers in full within the normal conditions of goods and services which is presented after the date of filing Chapter 11 or on the date of filing.
The shareholder of PG&E, BlueMountain Capital management LLC mentioned that it has greatly disappointed, to know that the company board neglected calls from numerous parties to drop its irresponsible and unmindful plan to file for bankruptcy.
Adding to this the investment firm stated that it might suggest list consisting of a board of directors, not after February 21 and requested all PG&E stakeholders not to assist the change at the company.
PG&E initially had debt stress of above $18 billion, was reported recently in this month and should follow court-supervised reorganization in the wake of the sparks and also include the Camp Fire of November.
On November 8 in the morning the Camp Fire broke out across the mountain community of Paradise, which widespread throughout the town and killed nearly 86 people, it was one of the deadliest and harmful wildfires in the history of the state.
Munich Re, the reinsurance company, quoted that the Campfire was the world’s most costly natural disaster of 2018 and during this month announced the overall losses from the disaster to $16.5 billion.
PG&E had once filed for bankruptcy once before 2001 and had cautioned that it might face significant liability in November in addition to this the insurance cover-up for its instruments had led for the Camp Fire and also other deadly wildfires.
Recently last month the state fire agency mentioned that PG&E equipment were not responsible for the 2017 wildfire in California wine Country, although the company faces a bundle of other lawsuits as from the owners of homes and businesses that were blazed during that period and other fires of 2017.
San Francisco based company offers electricity and natural gas service to nearly more than 6 million customers across Northern California. In 2018, the lawmakers gave them the authority to increase their rates to cover the losses incurred via wildfire from 2017. Meanwhile, the elected officials in this month showed a little desire to increase the rate or other methods to avoid the filing for bankruptcy.
The petition on bankruptcy was filed for the Northern Districts of California in the US in the Bankruptcy Court.