PG&E Law Firms Waiting to See If They Get Paid in Bankruptcy

Jan. 15, 2019, 10:53 PM UTC

The scores of law firms that have worked for Pacific Gas & Electric Co. may find payments they’ve already received subject to clawbacks — and could be among the last creditors paid for what they’re still owed.

PG&E’s $30 billion in liabilities related to deadly California wildfires will soon prompt its second bankruptcy filing, the utility announced Jan. 14.

Law firms that represented PG&E could find payments they received 90 days prior to the bankruptcy filing deemed re-coupable as an avoidable payment. Such a “preference issue” is common in bankruptcies and can include creditor law firms, Leslie D. Corwin, ...

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