PG&E Judge Calls New Fire Season Hidden `Elephant’ in Bankruptcy

U.S. Bankruptcy Judge Dennis Montali said he is concerned that another disastrous wildfire could cause the utility to default on the loans it is using to help pay for operations while under court protection.

• “We all know there will be a 2019 fire season,” Montali told lawyers for PG&E during a court hearing Wednesday in San Francisco
• Company’s bankruptcy could be disrupted should lenders declare a default as a result of new fire claims filed against PG&E; those lenders are seeking strong collateral protections as part of their proposed $5.5b financing package
• In bankruptcy, so-called debtor-in-possession lenders are paid ahead ...