PG&E Still Plans Bankruptcy Despite Investor Proposal

(Bloomberg) -- PG&E Corp. still expects to file for Chapter 11 protection as soon as Tuesday, despite last-minute proposals by investors to keep the utility out of bankruptcy, people familiar with the situation said.

The board evaluated secured-debt arrangements and other forms of capital, but decided they weren’t the best alternatives to address billions of dollars in potential wildfire liabilities, according to one of the people, who asked not to be identified because the information isn’t public.

A key stumbling block remains California’s inverse condemnation policy that can hold utilities liable for wildfire damages regardless of whether they’re negligent, according to the people.

PG&E spokeswoman Lynsey Paulo declined to comment Monday.

To contact the reporter on this story: Mark Chediak in San Francisco at mchediak@bloomberg.net

To contact the editors responsible for this story: Lynn Doan at ldoan6@bloomberg.net, Will Wade, Reg Gale

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