Judge refuses to approve fire victims letter attacking PG&E

BERKELEY, Calif. (AP) — A federal judge has refused to put his stamp of approval on a letter to Northern California wildfire victims from attorneys who allege that Pacific Gas & Electric may be breaking its promises as it tries to preserve a plan for getting out of bankruptcy in an unraveling economy.

The decision issued late Tuesday by Bankruptcy Judge Dennis Montali bolsters PG&E's efforts to hold together its plan.

Montali rejected the request from the committee representing wildfire victims after listening to nearly two hours of sometimes acrimonious arguments during a hearing held earlier in the day.

The four-page ruling left the door open for the wildfire victims' committee to send out a letter outlining its concerns as the voting continues on PG&E's plan for dealing with the death and destruction caused by its electrical grid. A request for comment from the victims' committee after Montali's rebuff wasn't immediately answered.

PG&E's lawyers had scoffed at the allegations as a desperate bid to renegotiate a $13.5 billion settlement reached with wildfire victims four months ago.

Tuesday's courtroom wrangling focused on the real value of the $13.5 billion deal, and when the money will be available to help more than 81,000 people who lost family members, homes and businesses during 2017 and 2018 a series of wildfires that killed nearly 130 people and destroyed thousands of homes. PG&E plans to plead guilty to 84 counts of involuntary manslaughter for the 2018 fires.

The wildfire victims' committee wanted Montali to take the unusual step of approving a letter raising red flags about the settlement in the midst of the voting on PG&E's complex plan for emerging from bankruptcy. The plan envisions paying out more than $25.5 billion in...