As Promised Shares Lose Value, California Wildfire Victims Reject $13.5B Settlement With PG&E

Four months ago, Pacific Gas & Electric seemed poised to emerge from bankruptcy after reaching a $13.5 billion settlement with tens of thousands of people who lost homes in wildfires started by the utility’s equipment.

Investors cheered that agreement, bidding up the company’s share price by nearly 40 percent. But the deal now appears to be in danger — and with it the company’s hopes of getting back on its feet by a crucial deadline.

Some homeowners say they no longer intend to vote for the deal in bankruptcy court because half the money they are set to receive will be in PG&E shares.

The shares’ value has tumbled in recent weeks in the broad stock sell-off prompted by the coronavirus pandemic.

Three of the 11 victims on a bankruptcy court committee representing those with fire claims against PG&E have resigned. The remaining members rejected the deal in a court filing on Monday.