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Published on 5/26/2020 in the Prospect News Distressed Debt Daily.

PG&E fire victims eye ‘voting procedural irregularities’ investigation

By Caroline Salls

Pittsburgh, May 26 – A group of PG&E Corp. wildfire claimants is asking the U.S. Bankruptcy Court for the Northern District of California to appoint an examiner to investigate alleged “voting procedural irregularities,” according to a motion filed Monday, just two days before the company’s Chapter 11 plan confirmation hearing is scheduled to begin.

Karen Gowins and “many wildfire victims” said in the motion that many fire victim claimants did not receive plan ballots and court-mandated disclosure materials or received them after the May 15 plan voting deadline.

In addition, the claimants said attorneys selecting an indirect solicitation method did not receive the ballots and disclosure materials until they requested them well into April, even though PG&E was required to mail them by March 31.

“Moving parties believe that a thorough, independent investigation of any fraud, neglect, incompetence misconduct, mismanagement or irregularity on the part of debtors and their noticing agent is in the best interest of the fire victim creditors,” the motion said.

A hearing on the examiner appointment motion is scheduled for June 4.

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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