A wildfire raging in California threatens to destroy more than homes and businesses — it could also undermine bankrupt PG&E Corp.’s plan to raise $14 billion to finance the crisis-stricken utility’s turnaround plan, Reuters reported. If the fire becomes large enough, investors could walk away from their commitment to finance the California power utility’s bankruptcy plan. That would put in doubt the company’s plan to provide up to $8.4 billion to victims of past fires blamed on the company’s equipment. In Sonoma County north of San Francisco, the Kincade Fire has burned more than 75,000 acres in PG&E’s service area since breaking out on Oct. 23, forcing evacuation orders for some 180,000 people. The fire has destroyed 124 structures and more than 90,000 are threatened amid strong winds and dry weather, according to CalFire, California’s fire-fighting agency. The number of structures destroyed is key to PG&E’s bankruptcy exit plan. Any fire this year caused by PG&E that destroys more than 500 homes or commercial structures would trigger a clause in the financing agreement that would allow investors to back out. The agreement has a similar termination clause for next year.
