Victims of wildfires caused by PG&E Corp. are seeking to upend its deal to exit bankruptcy, the Wall Street Journal reported. Two members of the claimants’ committee that represents fire victims in the giant California utility’s chapter 11 case resigned late last month and said they would campaign to defeat the exit plan. They cited concerns that it pays victims half a $13.5 billion settlement in PG&E shares, exposing them to greater risks than other creditors. At least two-thirds of the roughly 70,000 people and businesses who filed claims against PG&E have to approve the exit plan. If the dissenters are able to influence enough of them, it could create a serious roadblock for the company, which cleared a major hurdle on its path to get out of bankruptcy last month by securing the support of California Gov. Gavin Newsom (D). If fire victims reject their settlement, PG&E would have to reopen negotiations with them or ask U.S. Bankruptcy Judge Dennis Montali to approve the plan without their backing as the fairest possible compensation for fire victims. Judge Montali has signaled that he would be disinclined to approve the plan without fire victims’ support.
