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PG&E Emerges From Bankruptcy

PG&E Corp. (PCG) said Wednesday that it has emerged from Chapter 11 bankruptcy protection, after implementing its financial restructuring plan that was previously approved by the U.S. Bankruptcy Court and state regulators.

PG&E had filed for bankruptcy protection in January 2019 as it faced up to $30 billion in fire liabilities, including the 2018 Camp Fire which killed at least 86 people.

The California power giant said today that it deposited about $5 billion in the Wild Fire fund.

It will fund the wild fire victims trust with $5.4 billion in cash and common stock representing a 22.19% stake in the company.

In addition to funding the Fire Victim Trust, PG&E has also now funded two additional wildfire settlements, paying about $1 billion to satisfy the wildfire claims of certain cities, counties, and other public entities, and paying an $11 billion settlement to insurance companies and other entities that paid claims by individuals and businesses related to wildfires in recent years.

The company said its newly appointed board is now officially in place along with the company's new Interim chief executive officer, Bill Smith, who officially took over from outgoing chief executive officer, Bill Johnson, effective July 1, 2020.

The new Board consists of 14 members, 11 of whom are new.

PG&E said last month that it plans to sell its San Francisco headquarters and move to Oakland in the coming years, in a cost-saving effort that would result in California's largest utility leaving the city where it has been headquartered for more than a century.

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