A judge for federal bankruptcy on Tuesday in San Francisco has approved a couple of settlements which total to $24.5 billion and have been offered by PG&E for the victims of wildfires in Northern California and the insurance companies which have paid the claims of damages. PG&E utility has acknowledged that it was their equipment which had ignited the wildfires which have turned out to be catastrophic in the last few years.
A settlement worth $13.5 billion had been announced in the previous week and had been designated for the compensation of the wildfire victims. There is one more which is worth $11 billion and is going to be given to insurers.
Dennis Montali, the U.S. Bankruptcy Judge had released his decision post a five-hour hearing on Tuesday. This action has improved the bid of the utility to exit the proceedings of bankruptcy before the deadline of 30th June. This is when this utility is going to be eligible for the wild fire fund which is financed by the state.
Judge had further allowed a civil suit for being brought against the company by the families of December 2016 victim of the Ghost Ship fire which had led to the killing of 36 people. This trial is going to determine the liability of the utility in that fire
Today has been an important milestone for the Bankruptcy court which has approved the agreement for settlement and that resolves all the major claims of the wildfire as per PG&E. They added that this is going to get the victims paid so they can begin to rebuild in their lives.
The plans however are going to still face the opposition of the governor of California, Gavin Newsom.