BUTTE COUNTY, Calif. - Action News Now reporter Christina Vitale spoke with a lawyer to break down what bankruptcy means for the company.
PG&E is facing liabilities that reach $30 billion in damages from the Camp Fire.
The business is now preparing for reorganization under Chapter 11.
This means that PG&E will continue operating its gas and electric service to customers.
Chico Lawyer Adam Corrells said its still pre-mature in determining what this means for PG&E moving forward.
In terms of reorganization Sorrells said we can look back at their file for bankruptcy in 2001.
At that time, they were about $9 billion in debt, which is much less than the debt they face currently.
"There's going to be electricity that's not going to go away," Sorrells said. "If necessary, the government will step in. I know that Governor Gavin Newsom is paying very close attention to this and is going to make sure that nobody loses their power if there's not some cataclysmic problem and so I think it's more going to be an issue for people that are investors and of course for victims of the Camp Fire and the various other fires across the state."
PG&E released the following statement in regards to the potential filing:
"We believe a court-supervised process under Chapter 11 will best enable PG&E to resolve its potential liabilities in an orderly, fair and expeditious fashion. The process also will enable PG&E to access the capital and resources we need to continue providing our customers with safe services and investing in our systems and infrastructure."
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- PG&E Gearing Up for Possible Bankruptcy, CA Lawmakers Say
- ICYMI: PG&E Considering Options Like Downsizing and Bankruptcy