PG&E Corp.’s plan to pay $11 billion to fire insurers is under attack from both California Governor Gavin Newsom and wildfire victims. Newsom said California may pursue its own proposal to reorganize the company in a court filing on Nov. 9. Newsom threatened last week to take over PG&E’s restructuring if two warring groups can’t come to terms on how to reorganize the bankrupt utility.
A group of fire victims lodged a lawsuit against the San Francisco-based company insisting they get paid before insurers, according to the filing. Under California law, wildfire victims must be “made-whole” before insurers can collect on that settlement.
