Lawyers for more than half the wildfire victims who negotiated a $13.5 billion settlement with PG&E Corp. say their clients plan to vote overwhelmingly in favor of the bankrupt utility’s reorganization plan.
The attorneys represent about 40,300 of the estimated 70,000 who lost homes, businesses and other property in blazes blamed on PG&E equipment. Members of the largest group, represented by the firm Watts Guerra LLP, have voted nearly unanimously in favor of the deal, with more than half of 18,000 total votes already cast, according to people familiar with the matter.
The vast majority of the second largest group, represented by the Singleton Law Firm, also solidly back the plan, although most haven’t voted yet, a senior partner said.
“So far, the response has been overwhelming,” said the partner, Gerald Singleton, whose firm represents roughly 7,000 victims.
The preliminary tallies come as attorneys for a committee representing fire victims in the bankruptcy have asked a federal judge to modify the settlement because half of the payout will be funded with stock that’s been battered by the coronavirus fallout. PG&E’s Chapter 11 plan must win support from two thirds of wildfire victims who cast a ballot. Voting began this week and concludes May 15.