PG&E claimant’s statement order reconsideration motion denied

By Caroline Salls

Pittsburgh, April 2 – PG&E Corp. claimant William B. Abrams’s motion asking the U.S. Bankruptcy Court for the Northern District of California to reconsider its order approving the disclosure statement for the company’s plan of reorganization was denied on Wednesday.

As previously reported, Abrams said the order should be reconsidered “given the recent tort claimant committee resignations and the supplements to the disclosure statement that were filed after the order was issued.”

“The nature of the TCC resignations, the supplements to the disclosure statement and the updated financial projections that were filed by the debtors leave the disclosure statement fatally flawed given that the order was based on an incomplete and misleading record,” Abrams said in his motion.

In addition, Abrams said the PG&E debtors and the tort claimants committee are attempting to supplement the disclosure statement in order to gain acceptances of the plan instead of resolving a trust agreement and registration rights agreement that would allow “victim claimants” to make an informed decision on the plan.

In Wednesday’s order, judge Dennis Montali said Abrams is dissatisfied with a lack of information regarding the wildfire trust currently being set up to process and disburse payments to creditors who are victims of the Bay Area wildfires.

“Unfortunately, creditor’s concerns cannot be addressed at this point in the case, partially due to ongoing, court-ordered mediation among the parties to resolve various issues regarding the trust,” the order said.

In addition, Montali said all of the parties to the PG&E case are attempting to meet the legislative deadline of June 30 to confirm a plan of reorganization, and countless matters were unable to be fully completed before the disclosure statement was disseminated.

“The court is not inclined to cause further delay in favor of information that is not yet available,” the order said.

The electric and natural gas utility is based in San Francisco. The company filed bankruptcy on Jan. 29, 2019 under Chapter 11 case number 19-30088.

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