PG&E seeks bankruptcy protection; Newsom urges utility to 'honor promises'

PG&E Bankruptcy Filing Looming

PG&E CEO Steps Down Amid Potential Bankruptcy Preparation

PG&E said it is in discussions with lenders about receiving roughly $5.5 billion in debtor-in-possession financing to help it operate while navigating through bankruptcy.

Embattled utility PG&E, facing potentially billions of dollars in liability over California's deadly wildfires past year, has replaced its CEO.

PG&E said Monday that it's given the required 15-day advance notice that it plans to file for Ch. 11 bankruptcy protection.

The utility holding company said it did not see any impact to electric or natural gas services for its customers as a result of a bankruptcy.

PG&E could be on the hook for tens of billions of dollars for its potential role in California's devastating Camp Fire past year - the deadliest and most destructive wildfire in the state's history.

On the PG&E website, the company stated it would, "initiate voluntary reorganization proceedings under Chapter 11".

The company's board of directors has named John Simon Interim Chief Executive Officer as the search for a new CEO continues. In a PG&E report last month, the company outlined how employees discovered damaged power towers minutes before the Camp Fire broke out.

PG&E reported an equipment malfunction at the time and location where the Camp Fire started on November 8.

The utility is planning to notify employees as soon as Monday that it may make a Chapter 11 filing within 15 days, people familiar with the plan said Saturday.

California's wildfires in 2017 and 2018 will likely cost tens of billions of dollars.

"While we are making progress as a company in safety and other areas, the Board recognizes the tremendous challenges PG&E continues to face".

The daughter of Cuban political refugees, Williams became the nation's first Latina CEO of a Fortune 500 company when she took over PG&E. That blaze killed at least 86 people, destroyed 14,000 homes and leveled Paradise, a city of 27,000 residents. It is the deadliest and most destructive wildfire to have occurred in the state.

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