Bankruptcy Law News

PG&E Victims Lawyers’ Squabble Could Slow Bankruptcy Exit (1)

April 7, 2020, 12:51 AM

PG&E Corp.’s glide toward approval of its bankruptcy plan has hit new turbulence, with lawyers for fire victims clashing over whether to push for a better settlement because the risk of being compensated with stock has ballooned.

Attorneys for the official committee of fire victims in PG&E’s bankruptcy want the power company to guarantee the value of the half of the $13.5 billion settlement to be paid through new shares of stock. Otherwise, they contend the deal’s value will shrink as a result of the market downturn caused by the coronavirus pandemic.

In a court filing Monday, the lawyers...

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