PG&E Officially Votes To File For Chapter 11 Bankruptcy
SAN FRANCISCO (CBS SF) — The Pacific Gas and Electric board of directors voted late Monday evening to file for Chapter 11 bankruptcy protection.
PG&E said it would officially file at midnight Tuesday.
Earlier Monday, at a noisy meeting punctuated by protests, the California Public Utilities Commission in San Francisco voted to allow PG&E Co. to borrow up to $10 billion to pay for operations during its expected bankruptcy.
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PG&E has said it plans to file its bankruptcy protection petition in U.S. Bankruptcy Court to enable it to continue operating while resolving a potential liability of up to $30 billion for Northern California wildfires.
The Chapter 11 process enables a company to freeze its debts and continue functioning while developing a financial reorganization plan.