The Wall Street Journal is reporting that Gavin Newsom, Governor of California, has warned PG&E, the states power and electric supplier, that unless the company, investors and bondholders don’t reach an agreement to exit bankruptcy, the State may take over the company.
Newsom has called for a meeting of company executives, shareholders and representatives for wildfire victims to examine ways to facilitate PG&E’s reorganization plan to help the company emerge from Chapter 11 by June 30, a date imposed by the State.
According to the WSJ:
“PG&E as we know it, may or may not be able to figure this out, if they cannot we are not going to sit around and be passive,” Mr. Newsom said. “The state will prepare itself as backup for a scenario where we do that job for them.”
Mr. Newsom said he has assigned his cabinet secretary, Ana Matosantos, to head a team tasked with preparing a plan should the state need to intervene. Ann Patterson, Mr. Newsom’s lead attorney on the matter, Alice Reynolds, his lead energy and environmental policy expert, and Rachel Wagoner, his senior legislative strategist, will aid in the effort.