Insurers offer competing plan to rescue PG&E from bankruptcy

SAN FRANCISCO (AP) — Insurance companies that say Pacific Gas & Electric owes them more than $20 billion from wildfire claims wants to take over the California utility and pull it out of bankruptcy.

The group of insurers filed court documents Tuesday seeking to end PG&E’s exclusive right to file a reorganization plan. They want the right to submit their own plan to wildfire victims and to other PG&E creditors.

Investigators have blamed PG&E equipment for sparking some of California’s recent devastating wildfires. The insurers say the utility owes them reimbursement for about $20 billion in wildfire loss claims.

A group of PG&E bondholders also is competing for the right to submit a reorganization plan. A federal bankruptcy judge is expected to consider the bondholders’ request Wednesday.

Categories: California News