Will PG&E Be Forced to Sell Part of Company Following Claims?
In late 2018, the California Camp Fire spread across the entire state, causing devastation for many people including aspects such as personal injuries, deaths, and property damage for thousands. Now, many people are facing the real fear that they will not be able to pay for their bills following the Camp Fire and have moved forward with a variety of lawsuits during this difficult and desperate time. Unfortunately, news is not looking good for PG&E, who is now facing lawsuits pending the investigation that might point toward them as it pertains to liability.
Because the damages continue to pile up as many people speak with insurers and continue to take care of bills on their own, PG&E is nervous about the outcome of the cases and the future of their company. As a result, in recent news, PG&E has discussed the idea of possibly selling off a major part of their company to cope with the costs that are impacting the company since the wildfire took place. In fact, PG&E has specified that it is throwing around the idea of selling its natural gas division so that it can completely avoid bankruptcy, which can threaten everything in its wake.
PG&E allegedly sent an email that states that safety is its top priority as they figure out how the company is going to move forward. PG&E has promised that it is going to stay committed to helping customers and communities recover and rebuild in the wake of the terror that has gripped all of those throughout northern California. 35 families alone in the town of Paradise has moved forward with lawsuits while the investigation continues and, at this time, the speculations of selling portions of the company and looming bankruptcy are a reality.
The Outcome for LawsuitsÂ
If PG&E is forced to file for bankruptcy as an end result, what will happen? This means bad news for every party involved in this case. For one, it means that consumers could see higher rates. In fact, in the past, PG&E actually filed for bankruptcy one other time during the 2001 energy crisis, which meant that customers wound up paying an estimated $1,300 to $1,700 in higher rates. It could also risk the livelihood of workers, putting a halt on their pensions. Lastly, there is the reality that those suffering damages, especially personal injury victims, could be vastly affected if the bankruptcy filings triggered a stay on all lawsuits.
What happens when a company files for bankruptcy while you have proceedings against them? In the worst cases, a lawsuit could be rendered useless following the bankruptcy filing, but there are options. When a petition for bankruptcy is filed, an automatic ‘stay’ is put on the proceedings, which means that creditors are not permitted to collect on debts and new lawsuits are not permitted to be filed. If you want to continue to move forward with your lawsuit, you will have to ask for permission from the bankruptcy court to file a motion that will lift the stay. If you can show that the bankruptcy filing was done in bad faith because you and many others are desperate after the Camp Fire, you can attempt to do this with the help of your attorney.
It is important to protect your interests following one of these serious cases, which is why you should always move forward with the experienced help of an attorney who specializes in these cases. At the Brady Law Group, our experienced and dedicated attorneys have experience in wildfire cases in California and want to help you whether you have suffered many losses, received burn or smoke-related injuries, or lost a loved one. We are here for you during this desperate and difficult time in your life. Contact us today for more information at (866) 478-6483.
