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Lawyers Express Doubt On PG&E Corporation (NYSE:PCG)’s Ability To Pay Wildfire Victims Because Of Coronavirus Triggered Stock Market Tumult

The lawyers, who negotiated hard for the wildfire victims to get a fair deal with PG&E Corporation (NYSE:PCG), expresses doubt about the company’s ability to pay $13.5 billion agreed to the victims. The recent coronavirus triggered stock market turmoil plays a spoilsport. PG&E’s stock has declined to $10.9 after reaching a high of $18.34 on February 11, 2020.

Attorneys request Dennis Montali to grant permission

The attorneys representing the wildfire victims’ committee have requested Dennis Montali, the US Bankruptcy Judge, for permission to detail the pitfalls of the settlement and send a letter. Michael Carlson, the committee member said the committee tried to get the problems fixed by PG&E and comply with the settlement of $13.5 billion. However, the company has not taken action to settle the issue so far.

Qualify for coverage from the wildfire insurance fund

The bankruptcy hearing is scheduled for Tuesday for hearing. If Montali gives nod for the letter, the wildfire victims will be advised to hold on voting for the bankruptcy plan of PG&E until May 2, 2020. As a result, PG&E will get time up to April 28, 2020, to fix the issues in the deal. The company is putting in significant efforts to get out of the bankruptcy before the deadline June 30, 2020, and qualify for California created wildfire insurance fund.

PG&E is hopeful of compensating the victims

On Monday, PG&E said it knows the cause of the anxiety surrounding the deal with wildfire victims. However, the company is still hopeful of compensating the victims soon. It said the stock price is still higher than the price of two months before the deal on December 6, 2019. The company said all the parties involved in the deal are well known about the fluctuations in the stock prices.

According to a brief filing on Monday, Gerald Singleton, a lawyer, has told Montali to quash the request for sending a proposed letter because it will submit the victims to unwanted confusion and risk. He is working for over 7,000 wildfire victims as part of a legal team. He said the lawyers’ committee, who intends to send out a letter, represents a minority of over 81,000 people, who submitted claims in the bankruptcy case.

Published by Fiona Gibson

Fiona is a finance graduate and an expert in analyzing market trends.



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