Insurance companies contending that Pacific Gas & Electric owes them more than $20 billion from wildfire claims want to take over the California utility and pull it out of bankruptcy.
The insurers filed court documents Tuesday to end PG&E's exclusive right to file a reorganization plan. They want the right to submit their own plan to wildfire victims and other PG&E creditors.
Their request came ahead of a Wednesday hearing at which a bankruptcy judge is expected to consider a request by PG&E bondholders who want to submit a restructuring plan.
FILE - This Jan. 14, 2019, file photo shows the logo for Pacific Gas & Electric Co. above a trading post on the floor of the New York Stock Exchange. A group of insurance companies are offering a plan to take over Pacific Gas & Electric, the latest to offer competing proposals to pay the utility's wildfire liabilities and pull it out of bankruptcy. In court filings Tuesday, July 23, 2019, the insurers said PG&E Corp. owes them more than $20 billion in claims paid to victims of recent California wildfires caused by PG&E equipment and offered a "viable path" to emerge from bankruptcy. (AP PhotoRichard Drew, File)
PG&E filed for bankruptcy in January to deal with an estimated $30 billion in liabilities from wildfires its equipment may have ignited in 2017 and 2018, including the wildfire that largely destroyed the Northern California town of Paradise and killed 85 people.
The insurers have said the utility owes them about $20 billion in reimbursements for wildfire claims. Under their plan, many of their claims against PG&E would be converted into new stock, giving them a sizable share of the company's shares and allowing them to establish what they described as a "well-funded" trust for wildfire victims.
The insurers said their plan provides "a viable path" toward PG&E emerging from bankruptcy. They argued the utility has made little progress in settling claims and that other stakeholders should be allowed to present their own.
PG&E has until Sept. 26 to submit its plan and is resisting insurers' attempt to present their own.
In a statement Tuesday, the utility said it has made "significant progress in developing a viable, fair and comprehensive plan of reorganization that will compensate wildfire victims, protect customer rates, and put PG&E on a path to be the energy company our customers need and deserve."
Allowing the insurers to submit their plan ahead of PG&E's proposal "would increase the potential for a long, drawn-out bankruptcy process and create unnecessary delay," the company added.
The bondholders requesting court permission to offer their own reorganization plan include some of the biggest investors on Wall Street.
They are seeking to invest more than $30 billion, which would give them a majority stake in the company. The bondholders said they would set aside at least $16 billion of their investment into a trust to pay claims arising from the 2017 and 2018 wildfires.
The stakes surrounding PG&E's bankruptcy exit plan intensified after Democratic Gov. Gavin Newsom signed a law on July 12 requiring major utilities to spend at least $5 billion on safety improvements and creating a fund of up to $21 billion to help pay out future wildfire victims.
The fund is aimed at financially stabilizing the state's three largest investor-owned utilities: PG&E, Southern California Edison and San Diego Gas & Electric.
The law says PG&E can't access the financing mechanism unless it gets out of bankruptcy by the end of June 2020.
The governor's office, along with state utility regulators, said they will ask the judge Wednesday to establish a timeline and process for the bidders to submit their proposal.
Legal advisers for Newsom and the California Public Utilities Commission said they want to encourage an organized, competitive process to achieve the best results for the state.
"All offers out there should to be brought to the table, and given a fair and transparent opportunity to compete," said Nancy Mitchell, an attorney advising for Newsom's office.
PHOENIX (AP) — Fernando Tatis Jr. and Jake Cronenworth hit back-to-back homers, Dylan Cease pitched 6 2/3 strong innings and the San Diego Padres won their third game in a row, beating the Arizona Diamondbacks 7-1 on Friday night.
Manny Machado hit a two-run homer. Cronenworth finished with three extra-base hits, adding two doubles.
The Padres had a big offensive game on the same night they learned they might be adding another good hitter. San Diego is close to acquiring two-time batting champion Luis Arráez in a deal with the Marlins.
“I think it's great — you're always looking for more offense and a left-handed bat to balance out the lineup,” Padres manager Mike Shildt said. “But listen, nothing's official. We'll leave it at that.”
The Diamondbacks have lost 10 straight series openers after beating the Colorado Rockies on opening day.
D-backs pitcher Slade Cecconi (1-2) retired the first nine batters he faced, but ran into trouble in the fourth. Jurickson Profar walked to start the inning and Tatis launched a shot to left-center — his seventh homer of the season.
Cronenworth followed with another homer to make it 3-0 and rookie Jackson Merrill broke an 0-for-20 stretch at the plate with a one-out RBI double for a 4-0 lead.
Cronenworth had a down 2023 season, but has looked much more like the hitter who was an All-Star in 2021 and 2022 through the first month of this season. He's batting .279 with six homers and 25 RBIs.
It was Cronenworth’s second straight game with a homer. He hit a grand slam in the team’s 6-2 victory over the Reds on Wednesday.
“It's the right approach with the right swing,” Shildt said. “He's married both. He's driving the ball to all different parts of the field and not trying to do to much.”
Cecconi didn't make it out of the fifth, giving up six runs over 4 1/3 innings.
The Padres' three-homer outburst provided plenty of support for Cease (4-2), the hard-throwing right-hander who gave up just one run on three hits while striking out eight. He didn't allow a walk.
“I think my fastball command was a lot better, which is really a lot of the battle,” Cease said. “When I'm getting my fastball where it needs to go, it opens up a lot of stuff.”
Machado made it 7-0 in the fifth with a two-run homer to left center off reliever Matt Bowman. The scorched line drive came off Machado's bat at 111.7 mph.
The sliding D-backs — defending National League champions — have lost 10 of their past 15 games and fell to 14-19 for the season.
“We got beat tonight,” D-backs manager Torey Lovullo said. "We got out-managed, we got out-pitched, we got out-hit, we got out-coached. We've got to find a way to get the job done and play our type of baseball. That's the bottom line.
“We're grinding away. We're trying.”
Arizona finished with just three hits. Eugenio Suárez had an RBI single in the fifth.
TRAINER'S ROOM
Diamondbacks: Lovullo told reporters that closer Paul Sewald (oblique) and OF Alex Thomas (hamstring) could return to the active roster as soon as Tuesday against the Reds.
UP NEXT
The D-backs will throw RHP Brandon Pfaadt (1-1, 4.63 ERA) while the Padres will counter with RHP Michael King (2-3, 5.00 ERA) on Saturday night.
AP MLB: https://apnews.com/hub/mlb
Arizona Diamondbacks' Ketel Marte, left, celebrates his double as San Diego Padres shortstop Ha-Seong Kim, front right, of South Korea, and umpire Phil Cuzzi (10) look for the baseball during the first inning of a baseball game Friday, May 3, 2024, in Phoenix. (AP Photo/Ross D. Franklin)
San Diego Padres starting pitcher Dylan Cease throws against the Arizona Diamondbacks during the first inning of a baseball game Friday, May 3, 2024, in Phoenix. (AP Photo/Ross D. Franklin)
San Diego Padres manager Mike Shildt watches the action on the field during the second inning of a baseball game against the Arizona Diamondbacks Friday, May 3, 2024, in Phoenix. (AP Photo/Ross D. Franklin)
San Diego Padres' Manny Machado (13) rounds the bases after hitting a two run home run as Arizona Diamondbacks first baseman Christian Walker, left, pauses at first base during the fifth inning of a baseball game Friday, May 3, 2024, in Phoenix. (AP Photo/Ross D. Franklin)
Arizona Diamondbacks relief pitcher Matt Bowman, center, rubs up a new baseball after giving up a two-run home run to San Diego Padres' Manny Machado, left, during the fifth inning of a baseball game Friday, May 3, 2024, in Phoenix. (AP Photo/Ross D. Franklin)
San Diego Padres' Manny Machado points to the sky as he rounds the bases after hitting a two-run home run against the Arizona Diamondbacks during the fifth inning of a baseball game Friday, May 3, 2024, in Phoenix. (AP Photo/Ross D. Franklin)
Arizona Diamondbacks' Ketel Marte, right, slides safely into second base with a double as San Diego Padres shortstop Ha-Seong Kim, of South Korea, applies a late tag during the first inning of a baseball game Friday, May 3, 2024, in Phoenix. (AP Photo/Ross D. Franklin)
San Diego Padres' Fernando Tatis Jr., right, celebrates his two-run home run against the Arizona Diamondbacks with Padres' Manny Machado (13) during the fourth inning of a baseball game Friday, May 3, 2024, in Phoenix. (AP Photo/Ross D. Franklin)
