PG&E creditors offer CA wildfire victims $13.5 billion in cash upfront

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PG&E creditors offer CA wildfire victims $13.5 billion in cash upfront

Sugar-coating their settlement deal with the California wildfire victims, the San-Francisco-based power and utility company, PG&E Corp.’s creditors said they were prepared to pay off as much as $13.5 billion in cash up front, a PG&E Corp.

letter sent to the California Governor, Gavin Newson seen by a press agency reporter had revealed on Saturday, the 21st of December 2019, pointing towards a titivated effort from the PG&E management board which had filed for a Chapter 11 bankruptcy protection earlier this year after liabilities and damage claims of 2017 and 2018 California wildfires, believed to be happened due to faulty power grids of PG&E, had surpassed a whopping upsum of $30 billion.

Besides, according to the current terms of the deal which was approved on Tuesday (December 16th) by a US bankruptcy judge, half of the settlement pay out had to be financed with stocks of a refurbished PG&E Corp, while in their letter to the California Governor, PG&E stakeholders led by the investment fund Elliott Management were quoted saying their latest proposals would attend to every wildfire victims and those would precisely address demands made by the California governor over the last weekend.

In point of fact, casting further glooms over PG&E Corp.’s bankruptcy efforts what industry analysts said could take years to resolve, California Governor Newsom said in a statement on December 13th that the current settlement deal lacked proper safety enforcement mechanisms alongside major changes in governance which were mandatory under the state wildfire legislations adding, “(the settlement deal) would leave the company with limited ability to withstand future financial and operational headwinds. ”