Public entity PG&E wildfire claimants denied official representation

By Caroline Salls

Pittsburgh, March 14 – Numerous public entities were denied official representation in PG&E Corp.’s Chapter 11 bankruptcy case, according to an order filed Thursday with the U.S. Bankruptcy Court for the Northern District of California.

As previously reported, the public entities said they are the representative governmental bodies of communities that were devastated by the 2017 Northern California wildfires and the 2018 Camp Fire.

“The public entities’ tort claims against the debtors arising out of the wildfires are different, not only from the claims of individual tort claimants, but also from the claims of other governmental units who hold priority tax claims and other claims more traditionally asserted by governmental units,” the motion said.

“The PE wildfire claims are, therefore, truly unique, and must be treated separately from the claims of other creditors in this bankruptcy.”

As a result, the entities said they asked the U.S. Trustee overseeing the PG&E case to appoint an official committee comprised solely of the public entities with wildfire claims.

Although the U.S. Trustee has not contested the need for such a committee, the office said it does not have the authority to make the appointment.

The order did not elaborate on the reason the request was denied.

The entities said their wildfire claims could exceed $2.5 billion.

The electric and natural gas utility is based in San Francisco. The company filed bankruptcy on Jan. 29 under Chapter 11 case number 19-30088.

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