California’s governor says he’s ready to take over embattled PG&E

CNBC

PG&E has to exit Chapter 11 by June 30, but there is an obstacle: California Gov. Gavin Newsom, who has long talked about a state takeover.

The embattled utility has worked out deals to borrow money and guarantee more than $25 billion in payouts to wildfire victims, insurers and local municipalities.

Newsom said even if California doesn’t take over the utility, he wants PG&E’s exit plan to allow the state to step in first if the company seeks bankruptcy again.

One year after filing for bankruptcy, PG&E has worked out deals to borrow money and guarantee more than $25 billion in payouts to wildfire victims, insurers and local municipalities. It’s even come to terms with bondholders. As a result, its shares have skyrocketed 37 percent so far in January. Mizuho upgraded the stock this week to a “buy.” That optimism may be premature. The company has to exit Chapter 11 by a crucial June 30 deadline, and there is one huge remaining obstacle: California Gov. Gavin Newsom, who has long talked about a state takeover of the company.

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