Case Update: PG&E Bankruptcy, A Non-Standard Recovery Effort
We are pleased to see FRT’s unique service model for the PG&E bankruptcy starting to bear fruit for clients. After 26 rounds of debtor objections, no FRT client claims have been impacted.
Update on Proceedings
On July 28, 2023, the bankruptcy court entered an order requiring in part that if a claimant had not yet received a settlement offer, the debtors had to either make one or object to their claim by August 15, 2023.
That same order requires claimants, if they choose, to amend their claims by no later than October 6, 2023. It gives them the option to adopt allegations in another amended claim and/or in the federal district court securities class action against the PG&E directors and officers (the D&O Suit) by no later than October 13, 2023. Finally, the order sets deadlines for the debtors to object to remaining claims.
On August 23, 2023, the court heard oral argument on the third attempt by lead counsel in the D&O Suit to certify a claimant class. We expect the court’s ruling soon.
FRT Support Model
As of August 17, 2023, the debtors say 5,639 Securities Claims (roughly 64%) have been resolved. Following a wave of offers before August 15, 2023, FRT has been helping claimants – including newly added clients whose claims were filed by competitors that withdrew support – formulate their responses. Each client controls the resolution of its own claims, and each has different priorities and goals. Some are accepting, some are countering, and some are rejecting.
PG&E continues to showcase the challenges of non-standard matters. For FRT clients, our unique service model enables us to tailor support for each client and meet their needs. We are pleased that some have achieved resolution, and will continue to support those choosing to amend and continue.
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