Administration’s letter asks bankruptcy trustee to ensure victims, employees, and customers — not just Wall Street creditors — have meaningful representation on the official bankruptcy committees
SACRAMENTO — In a letter sent to the trustee in PG&E’s bankruptcy proceeding today, the Newsom Administration asked the court to ensure that wildfire survivors, PG&E employees, and customers have strong representation inside the bankruptcy courtroom.
“From the first indications that PG&E would file for bankruptcy, my Administration’s intentions have been clear — we will look out for the interests of this state,” said Governor Newsom in announcing the letter. “As this case unfolds, the state will continue working to ensure that Californians have access to safe, reliable and affordable service, that victims and employees are treated fairly, and that any bankruptcy outcome will preserve a strong renewable energy sector and maintain forward progress on the state’s clean energy goals.”
“Wildfire survivors, employees and customers deserve to have a seat at the table during this bankruptcy process,” added Governor Newsom. “These groups don’t have the resources of many of PG&E’s Wall Street creditors, but they will be directly impacted by the bankruptcy’s results and deserve to have substantial representation in bankruptcy court.”
Citing the profound impacts that the proceedings will have on wildfire survivors, employees, and customers, the Administration’s letter asked the court to give these groups meaningful representation on the court’s official bankruptcy committee or committees — the official entities that serve as watchdogs within bankruptcy proceedings. As the letter states, the composition of the creditors’ committee is critically important and must be led by stakeholders who have a long-term interest in California. This action would help ensure that that the reorganization plan does not come at the expense of these important California constituencies.
“Most vulnerable in this process are the wildfire victims who were uninsured, underinsured or have potential claims against the company for personal injury and wrongful death,” the letter reads. “These individual victims should not be left to fend for themselves in a creditor class outnumbered by sophisticated and deep-pocketed financial institutions and insurance companies.”
The Administration’s letter can be found here.