PG&E Corp is reportedly mulling whether to file for bankruptcy as soon as February, according to a Bloomberg report citing people familiar with the situation. The bankruptcy protection is apparently being sought to deal with its potential wildfire liabilities.
In a statement late Friday, PG&E said it’s “working diligently to assess the company’s potential liabilities as a result of the wildfires and the options for addressing those liabilities. We recognize the need to balance the interests of many stakeholders while maintaining safe, reliable, and affordable services for our customers, which is always our top priority”, without commenting on bankruptcy filing.
State Senator Jerry Hill said that the utility previously raised bankruptcy as leverage when seeking state assistance towards meeting its liabilities from wildfires in 2017.
The company has lost more than half its market value since the deadly wildfire broke out in California in early November.
In November, California Assemblyman Chris Holden suggested that a bill would be introduced in January to help PG&E absorb potential liabilities from the latest wildfires. Around the same time, California Public Utilities Commission chief Michael Picker’s agency was assessing whether to break up or take over PG&E’s Pacific Gas and Electric utility.