PG & E Files for California Fire Failure



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California's largest energy company said in a statement on Tuesday it had filed for Chapter 11 bankruptcy in the Northern District of California.

PG & E said it was committed to maintaining services for clients during the bankruptcy process.

John Simon, the company's interim CEO, said it would work "to create a more sustainable basis for providing safe, reliable and affordable services."

"We have heard requests for change and we are determined to take action throughout this process to build the energy system our customers want and deserve," he said in the statement.

PG & E has been linked to a number of forest fires in California, including Camp Fire, which has killed 86 and destroyed 14,000 homes along with more than 500 companies and 4,300 other buildings.

PG & E (PCG) announced on Jan. 14 that it intended to file for bankruptcy, but had to wait for a 15-day period required by California law.

The company needs to use the bankruptcy process – which will allow it to lose part of its debt – to pay for damages and stay in business.

PG & E said on Tuesday it was asking for approval of a loan agreement of 5.5 billion debtors. Earlier, it said in a statement that it had only about $ 1.5 billion in cash and cash equivalents in hand.

The PG & amp; And replaces the CEO amid concerns about bankruptcy

The company cited at least $ 7 billion in Camp Fire complaints. It is believed that Camp Fire was started when a PG & E power line came into contact with nearby trees.

PG & E reported "an interruption" on a transmission line in the area where the fire started, about 15 minutes before it started. Inside the massive burn area, PG & E found power equipment and a downed power pole and riddled with bullet holes, according to a letter sent to regulators. The company also reported that it found a line felled with tree branches.

In addition, a number of forest fires in 2017 – many of which were also attributed to PG & E – caused losses of $ 10 billion and 44 deaths. In 11 such fires, state investigators have found that the company violated codes for cleaning brushes near their power lines or committed related violations.

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