Judge Backs PG&E; Unit’s Chapter 11 Plan
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A Bankruptcy Court judge endorsed a plan that would bring Pacific Gas & Electric Co. out of Chapter 11 proceedings -- but the proposal is only one of six possibilities facing state regulators.
In a memorandum decision released late in the day, U.S. Bankruptcy Court Judge Dennis Montali said he would approve a negotiated settlement reached in June between the utility subsidiary of PG&E; Corp. and the staff of the California Public Utilities Commission. But Montali said his approval of the agreement to pay off PG&E;’s debts was conditioned on commission approval of the settlement.
The PUC will meet Thursday to consider the settlement, which would pay creditors 60 cents on the dollar for debts incurred during the California energy crisis of 2000-01. Critics say the proposal is too lucrative for PG&E; and its shareholders.
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Nancy Rivera Brooks
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