Bankrupt utility giant PG&E Corp. has removed a requirement that California Governor Gavin Newsom sign off on its settlement with wildfire victims, trying to buy more time for its restructuring plan, Bloomberg News reported. PG&E reached an agreement yesterday with representatives of the victims of fires ignited by its equipment to eliminate the provision after Newsom said on Friday that the power company’s proposed reorganization plan doesn’t comply with state law. San Francisco-based PG&E announced the decision one day before it was required by the $13.5 billion fire victims deal to respond to Newsom’s rejection and address his concerns. The governor had described the utility’s restructuring plan as falling “woefully short” and called for an entirely new board and a better financing structure, among other things. Killing the clause buys PG&E more time to shape a restructuring plan around the settlement with wildfire victims, which has emerged as the main obstacle to its exit from the biggest utility bankruptcy in U.S. history. The settlement is scheduled for a hearing today in bankruptcy court.
