PG & E, utility associated with forest fires in California, to file for bankruptcy
Flames from the campfire burn near a house on top of a ridge near Big Bend, California.
Pacific Gas and Electric, the utility company associated with deadly forest fires in California, said Monday that it plans to file for bankruptcy at the end of the month.
The San Francisco-based company said its decision to reorganize under Chapter 11 is tied to more than $ 30 billion in claims that it has to endure over the so-called 2018 campfire in Northern California – the deadliest in recent state history – that there were 86 people dead.
The tool is also under control for fires in 2017 that destroyed the wine region in Northern California and killed more than 40 people.
"The company today announced 15 days in advance required by California's newly-established law that it and its wholly-owned subsidiary Pacific Gas and Electric Company are currently planning to petitions to reorganize under Chapter 11 of the US Bankruptcy Code at or around January 29, "said a statement.
It said the bankruptcy file, which saw shares dip 48 per cent on Monday, should not affect electricity or natural gas service to its 16 million customers in California.
PG & E was under fire after the devastating forest fires in California after it appeared that some of the equipment would have ignited the flames.
The announcement of the bankruptcy came one day after Geisha Williams resigned as CEO of the utility company and was replaced on an interim basis by an executive vice president and general counselor John Simon.
"The people affected by the devastating forest fires in Northern California are our customers, our neighbors and our friends, and we understand the huge impact the fires have had on our communities and the need for PG & E to continue our machine gun efforts to put, "Simon said on Monday.
"We remain committed to helping them in the recovery and reconstruction," he added. "We believe that a court-controlled process under 2 Chapter 11 PG & E will best enable it to resolve its potential liabilities in an orderly, fair and expeditious manner." We expect that this process will also enable PG & E to access the capital and resources we need to provide our customers with secure service and invest in our systems and infrastructure. "
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