Last Monday, the largest power utility company in the U.S., PG&E declared its plans for preparing for Chapter 11 bankruptcy protection which will cover all its businesses. The company has been facing massive liabilities related to the wildfires which occurred over the past two years.
With the ongoing government investigations adding up to the extensive litigation, the liabilities of the company are predicted to reach up to $30 billion, due to the damages from the wildfire in 2018 and 2017.
The premier power company found in the U.S. regarding customer population implied that they have planned for the application for bankruptcy protection on January 29. They also informed their employees of a 15-day notice, in compliance with the California Law.
General Counsel John Simon is set to replace the ousted PG&E CEO Geisha Williams until an official replacement is selected.
PG&E is still in the process of recovering from the fire that burned Paradise, a mountain community in California, and known to have taken 86 lives. The November Camp Fire was recorded to be the most destructive and deadliest in the history of the state of California.
The company has received a $5.5 billion to be able to operate while recovering from near-bankruptcy. Financial experts and company adviser predict that PG&E might need two years to be able to emerge from bankruptcy.
Richard Kelly, the board chairman of PG&E, explained how the Chapter 11 bankruptcy protection is the only doable option left for both the company and its stakeholders.