Possible PG&E Bankruptcy Would Halt Liability Suits For North Bay Fire Victims

Thousands of Sonoma County families would see their claims against PG&E delayed — and possibly reduced — if the San Francisco utility carries through with its plan announced Monday to file for bankruptcy protection as a result of $30 billion in liability for wildfire damages in recent years. The move to file for Chapter 11 reorganization would throw out a carefully crafted compromise that passed the state Legislature last summer allowing PG&E to float state-sponsored bonds to pay for claims from the 2017 North Bay fires, which destroyed more than 6,000 homes and caused $10 billion in insurance claims. Instead, a federal bankruptcy judge in San Francisco would decide how to reorganize PG&E if the company follows through on its decision to file for bankruptcy on Jan. 29. That judge would determine who gets paid ­— and who doesn’t — among its creditors.