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  • December 2020 (Revised September 2021)
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PG&E and the First Climate Change Bankruptcy

By: Stuart C. Gilson and Sarah L. Abbott
  • Format:Print
  • | Language:English
  • | Pages:32
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Abstract

In early 2020, the California-based utility PG&E filed a second amended plan of reorganization. PG&E had filed for Chapter 11 bankruptcy in the face of more than $30 billion of legal claims brought against it for its alleged role in causing California wildfires. The plan had the support of key creditors and shareholders and a court-appointed committee representing the wildfire victims. However, it faced strong opposition from California’s governor, Gavin Newsom, who was concerned that PG&E’s plan would leave it too highly leveraged, and unable to make necessary investments. Were Newsom’s concerns valid ones? Did the plan as currently envisioned leave the reorganized PG&E with too much debt to meet its obligations to the wildfire victims while still making the necessary investments to update its equipment? And was PG&E prepared for the new reality of climate change?

Keywords

Chapter 11; Utilities; Liabilities; Restructuring; Insolvency and Bankruptcy; Debt Securities; Legal Liability; Climate Change; Utilities Industry; United States

Citation

Gilson, Stuart C., and Sarah L. Abbott. "PG&E and the First Climate Change Bankruptcy." Harvard Business School Case 221-057, December 2020. (Revised September 2021.)
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About The Author

Stuart C. Gilson

Finance
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Related Work

    • December 2020 (Revised September 2021)
    • Faculty Research

    PG&E and the First Climate Change Bankruptcy

    By: Stuart C. Gilson and Sarah L. Abbott
    • April 2022
    • Faculty Research

    PG&E and the First Climate Change Bankruptcy

    By: Stuart C. Gilson
Related Work
  • PG&E and the First Climate Change Bankruptcy By: Stuart C. Gilson and Sarah L. Abbott
  • PG&E and the First Climate Change Bankruptcy By: Stuart C. Gilson
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