PG & E is said to be planning bankruptcy reports to employees

(Bloomberg) – PG & E Corp., California utility giant against billions of dollars in burns, can alert employees as soon as Monday that it is preparing a potential bankruptcy filing, according to people familiar with the situation.

The San Francisco-based utility owner plans to send notice to fulfill a state law that requires the company to notify employees at least 15 days prior to a change of control, the people said, asking not to be identified because the information is not public. The summons will not necessarily lead to bankruptcy proceedings, and the company can still decide not if the situation changes, one of the people said.

PG & E refused to give a statement and said the company did not comment on the rumor or speculation.

A message may signal that the company has accelerated plans to create a Chapter 11 filing as a way to deal with offensive commitments from fire traps that tore through California in 2017 and 2018, killed over 100 people and destroyed hundreds of thousands of hectares. Investigators are investigating whether PG&E equipment ignites the deadliest of blazes. The company faces as much as $ 30 billion in damages – a prospectus that has deleted two-thirds of PG & E's market value, sent its bonds down and encouraged rating companies to downgrade PG & E's debt to garbage.

California passed the law last year after the deadly Wine Country fires that require tools to post public notices to employees for at least 15 days prior to a change of control, including bankruptcy proceedings.

Grevin Newsom, California Governor, said at a press conference Thursday that his office would make an announcement related to PG & E over the next few days, and that the question was at the top of its agenda. He said in a later interview that the announcement would involve agreements with the California Public Utilities Commission, the state's network operator and a commission established by the legislature to investigate fire extinguishing problems.

Newsom closely monitors the situation, "Nathan Click, a spokesman for his office, said Saturday.

Spreading Woes

PG & Es's deeper financial crisis has already spread to natural gas supply companies and generates electricity to its customers At least two small gas suppliers have limited sales to PG & E out of concern that the company will not be able to pay, people with a direct knowledge of the situation said earlier this week, some banks taking a long look at a potential $ 2 billion debt financing for Geysers, The world's largest geothermal complex, because it delivers the tool, people who are familiar with the matter, also said this week. counts on PG & E for all their income.

People familiar with PG & E's situation said last week that the company is considering filing bankruptcy within weeks [19659012]

To contact the reporter on this story: Mark Chediak in San Francisco at mchediak@bloomberg.net [19659015] To contact the editors responsible for this story: Lynn Doan at ldoan6@bloomberg.net, Tina Davis

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