Bankruptcy Judge Dennis Montali yesterday approved PG&E Corp.’s $13.5 billion settlement with victims of Californian wildfires, and the company’s stock rallied as the utility gained momentum to emerge from bankruptcy in June as planned, Reuters reported. The settlement provides cash and PG&E stock to a trust for the benefit of individual wildfire victims. Judge Montali also approved an $11 billion agreement with insurance companies, locking up the last and two most significant creditor groups. Adding momentum to PG&E’s plan, a lawyer for Governor Gavin Newsom (D) told Judge Montali the governor viewed the wildfire settlement as fair. “We don’t want to stand in the way of that,” Nancy Mitchell said. On Friday, Newsom rejected the PG&E reorganization plan and said the company would need a new board of directors and stronger finances to comply with a recently enacted wildfire law, known as A.B. 1054.
