Gavin Newsom of California said on Friday that Pacific Gas & Electric’s restructuring plan did not comply with a state law, throwing up a new hurdle to the company’s effort to resolve its bankruptcy. The move was not surprising given that Mr. Newsom, a Democrat, has criticized PG&E for starting devastating wildfires, not moving fast enough to resolve the claims of fire victims and not moving fast enough to improve its safety practices. A law the California Legislature passed this year gave Mr. Newsom the authority to approve any restructuring plan PG&E submits to the United States Bankruptcy Court. Mr. Newsom’s letter indicates that the company will have to engage in further negotiations with the governor before it can end its bankruptcy and participate in a state wildfire fund. “In my judgment, the Amended Plan and the restructuring transactions do not result in a reorganized company positioned to provide safe, reliable, and affordable service to its customers,” Mr. Newsom told PG&E in the letter.

Source: New York Times December 14, 2019 04:18 UTC