Insurance companies contending that PG&E owes them more than $20 billion from wildfire claims want to take over the California utility and pull it out of bankruptcy.
The insurers filed court documents Tuesday to end PG&E's exclusive right to file a reorganization plan. They want the right to submit their own plan to wildfire victims and other PG&E creditors, which they outlined in a court document.
Their request came ahead of a Wednesday hearing in which a bankruptcy judge is expected to consider a request by PG&E bondholders who want to submit a restructuring plan.
PG&E filed for bankruptcy in January to deal with an estimated $30 billion in liabilities from wildfires its equipment may have ignited in 2017 and 2018, including the wildfire in the Northern California town of Paradise that killed 85 people.
The insurers have said the utility owes them reimbursement for about $20 billion in wildfire loss claims. Under their plan, many of their claims against PG&E would be converted into new stock, giving them a sizable share of the company's shares and allowing them to establish what they described as a "well-funded" trust for wildfire victims.
The insurers said their approach provides "a viable path" toward PG&E emerging from bankruptcy. They argued the utility has made little progress in settling claims and that other stakeholders should be allowed to present their own plans.
