PG&E Filed For Bankruptcy Because OF The Wildfire Issues
Sometimes a business organization has to pay for their mistakes, and it seems like the same thing is happening with Pacific Gas and Electric company. According to the recent reports which state that the company has officially filed for bankruptcy because of California’s wildfire issues. An official statement released by the CEO of the company says that the company has submitted a chapter 11 bankruptcy filing. A few months ago a California’s majority of the forest got burned down due to which some people lost their lives also. Now there are reports which state the fire started because of the PG&E company’s fault and that’s why the local government had filed the case against it. According to the reports, the compensation which the company will have to pay is beyond their capacity, and that’s why the top management if PGE decided to opt for bankruptcy.
Under the bankruptcy code, the company will be allowed to pay for the damages it caused to the parties and will be able to run its business. According to the company’s financial statement which states it needs at least $5.5 billion of funds to pay off their debts but currently, the company has only $1.5 billion which shows the severe condition of the company. According to the reports, California’s wildfire started when the trees came into contact with the company’s power supply. However, even after denying the allegations those now have got proved into the court and company has accepted them.
However, some experts are predicting that the company needs more funds and stable management to sustain its business. A few days ago the CEO of the company left it amid of this controversy which shows the weak side of the company’s management.