The judge presiding over the massive PG&E Corp. bankruptcy on Tuesday declined to sanction an attempt to halt wildfire victims’ voting on the company’s restructuring plan, a setback for a group of lawyers that has tried to force changes to a crucial $13.5 billion settlement deal, the San Francisco Chronicle reported. Bankruptcy Judge Dennis Montali said in a written order that he would not approve a letter from a creditor committee of fire victims that would ask tens of thousands of people to delay casting a vote on PG&E’s plan to resolve the case. His decision came one day after attorneys for the committee asked for permission to send the letter, which was intended to get PG&E to provide stronger assurances about how fire victims will be paid for their losses. “Hundreds, if not thousands” of victims have voted already, Judge Montali wrote. “The (committee) apparently does not want to upset those votes, but it is beyond doubt that confusion will reign if the court permits the proposed letter to go out, leaving countless fire victims confused even more than they might be now.” About 80,000 victims are able to vote for or against PG&E’s plan until May 15. The committee wanted them to wait a few weeks in large part because the economic turmoil caused by the coronavirus pandemic prompted concern that PG&E may not actually be able to provide the full $13.5 billion after the case concludes.
