PG&E said it has reached an $11 billion settlement with insurance companies over wildfire claims, a significant step toward emerging from bankruptcy, the Wall Street Journal reported. The deal covers insurance carriers and hedge funds that were seeking compensation from PG&E for payouts insurers made to homeowners and businesses in connection with fires sparked by the utility’s equipment. It leaves wildfire victims as the only major group of claimants that has not reached a settlement with the San Francisco utility, which is pushing to emerge from bankruptcy next year. The settlement is the second major agreement PG&E has reached with claimants. In June, PG&E agreed to pay $1 billion to local governments and state agencies to settle claims from fires in 2017 and 2018, obtaining their support for the company’s bankruptcy plan. Representatives for wildfire victims criticized the settlement Friday, saying that the company appeared to be trying to isolate those who lost homes and lives to the fires.
