California utility PG&E explores bankruptcy filing - sources
Source: Reuters
BUSINESS NEWS JANUARY 4, 2019 / 6:07 PM / UPDATED AN HOUR AGO
Exclusive: California utility PG&E explores bankruptcy filing - sources
Liana B. Baker, Greg Roumeliotis, Mike Spector
5 MIN READ
(Reuters) - California utility company PG&E Corp (PCG.N) is exploring filing some or all of its business for bankruptcy protection as it faces billions of dollars in liabilities related to fatal wildfires in 2018 and 2017, people familiar with the matter said on Friday.
The company is considering the move as a contingency, in part because it could soon take a significant financial charge for the fourth quarter of 2018 related to liabilities from the blazes, the sources said.
A bankruptcy filing is not certain, the sources said. The company could receive financial help through legislation that would let it pass on to customers costs associated with fire liabilities, the sources said. But that is just a possibility, they said, so bankruptcy preparations are being made.
As of Friday, PG&E was shying away from negotiating so-called debtor-in-possession financing that companies typically line up before a bankruptcy filing to help keep operating while under court protection, one source familiar with the matter said.
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Read more: https://www.reuters.com/article/us-pg-e-us-bankruptcy-exclusive/exclusive-california-utility-pge-explores-bankruptcy-filing-sources-idUSKCN1OY225
