SACRAMENTO, Calif.--(BUSINESS WIRE)--Today, the Ad Hoc Subrogation Group announced an agreement in principle with PG&E Corporation and Pacific Gas and Electric (together, “PG&E”) in connection with PG&E’s ongoing chapter 11 bankruptcy case. The following is the group’s statement:
“The Ad Hoc Subrogation Group has reached an $11 billion proposed settlement with PG&E. While this proposed settlement does not fully satisfy the approximately $20 billion in group members’ unsecured claims, we hope that this compromise will pave the way for a plan of reorganization that allows PG&E to fairly compensate all victims and emerge from Chapter 11 by the June 2020 legislative deadline.”
The settlement is subject to definitive documentation, and approval by the Bankruptcy Court overseeing PG&E’s bankruptcy case. The settlement is to be implemented pursuant to a plan of reorganization, and subject to confirmation by the Bankruptcy Court.
About the Ad Hoc Group of Subrogation Claim Holders
The members of the Ad Hoc Subrogation Group hold approximately $20 billion in unsecured claims against PG&E arising from the billions of dollars of insurance claims paid to California wildfire victims.