California governor rejects PG&E bankruptcy reorganization plan
Source: Reuters
BUSINESS NEWS DECEMBER 13, 2019 / 10:00 PM / UPDATED 3 HOURS AGO
California governor rejects PG&E bankruptcy reorganization plan
Tom Hals, Steve Gorman
5 MIN READ
(Reuters) - California Governor Gavin Newsom on Friday rejected a bankruptcy reorganization plan submitted by PG&E Corp (PCG.N), the state’s largest investor-owned utility, saying its proposal fails to meet the requirements of a recently enacted wildfire law.
The decision by Newsom, sent to PG&E in a letter, complicates the company’s push to exit bankruptcy and provide billions of dollars to victims of devastating wildfires in 2017 and 2018 sparked by the utility’s power lines.
The embattled utility now has until Tuesday to further amend its plan to Newsom’s satisfaction, but his criticism of the reorganization package as it was presented by PG&E a day earlier was sweeping.
Newsom said the plan lacks “major changes in governance” and tougher safety enforcement mechanisms mandated under the state wildfire statute, known as Assembly Bill 1054, which was enacted in July.
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Read more: https://www.reuters.com/article/us-california-wildfires-pg-e/california-governor-rejects-pge-bankruptcy-reorganization-plan-idUSKCN1YI038
