PG&E wants to be out of Chapter 11 Bankruptcy by June 30. But Governor Newsom doesn’t like PG&E’s exit plan.
“I have no interest in the existing management and the existing board,” Newsom said. “It has to be a completely new company.” And he kept repeating this threat: “There’s going to be a new company or the state of California takes it over.”
Mike Danko explains that if PG&E doesn’t exit bankruptcy by June 30, it could mean the end of PG&E.
“If PG&E can’t get access to that fund, if it can’t get this deal done by June 30, then the lenders who are funding the deal are going to back out.”
PG&E’s current plan calls for setting aside $13.5 billion for wildfire victims. Danko expressed concern that if the State takes PG&E over, the plan falls apart, and PG&E’s victims might end up holding the bag. But the Governor promises that “We are going to do justice to the victims” even if the a takeover is required.
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