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| PG&E Deal With Wildfire Victims Challenged Over Share Price | PG&E Deal With Wildfire Victims Challenged Over Share Price |
| (7 days later) | |
| Four months ago, Pacific Gas & Electric seemed poised to emerge from bankruptcy after reaching a $13.5 billion settlement with tens of thousands of people who lost homes in wildfires started by the utility’s equipment. | Four months ago, Pacific Gas & Electric seemed poised to emerge from bankruptcy after reaching a $13.5 billion settlement with tens of thousands of people who lost homes in wildfires started by the utility’s equipment. |
| Investors cheered that agreement, bidding up the company’s share price by nearly 40 percent. But the deal now appears to be in danger — and with it the company’s hopes of getting back on its feet by a crucial deadline. | Investors cheered that agreement, bidding up the company’s share price by nearly 40 percent. But the deal now appears to be in danger — and with it the company’s hopes of getting back on its feet by a crucial deadline. |
| Some homeowners say they no longer intend to vote for the deal in bankruptcy court because half the money they are set to receive will be in PG&E shares. The shares’ value has tumbled in recent weeks in the broad stock sell-off prompted by the coronavirus pandemic. | Some homeowners say they no longer intend to vote for the deal in bankruptcy court because half the money they are set to receive will be in PG&E shares. The shares’ value has tumbled in recent weeks in the broad stock sell-off prompted by the coronavirus pandemic. |
| Three of the 11 victims on a bankruptcy court committee representing those with fire claims against PG&E have resigned. The remaining members rejected the deal in a court filing on Monday. . | Three of the 11 victims on a bankruptcy court committee representing those with fire claims against PG&E have resigned. The remaining members rejected the deal in a court filing on Monday. . |
| The flare-up of opposition threatens a key element of PG&E’s reorganization plan. Unless the company can emerge from bankruptcy by June 30, it will be ineligible for a new state fund defraying damage claims from future wildfires — the kind of liability exposure that drove it into bankruptcy court last year. | The flare-up of opposition threatens a key element of PG&E’s reorganization plan. Unless the company can emerge from bankruptcy by June 30, it will be ineligible for a new state fund defraying damage claims from future wildfires — the kind of liability exposure that drove it into bankruptcy court last year. |
| “It’s a house of cards in that everything is interconnected,” said George Triantis, a professor at Stanford Law School. If a majority of victims vote down the agreement, PG&E will probably miss the state deadline. “I’m not sure that it’s in the interest of the tort victims to cause this to fail,” Mr. Triantis said. | “It’s a house of cards in that everything is interconnected,” said George Triantis, a professor at Stanford Law School. If a majority of victims vote down the agreement, PG&E will probably miss the state deadline. “I’m not sure that it’s in the interest of the tort victims to cause this to fail,” Mr. Triantis said. |
| Wildfire victims are not speaking with one voice. Some support the deal and are campaigning for a yes vote, arguing that this is the best deal they can get, including through newspaper ads. | Wildfire victims are not speaking with one voice. Some support the deal and are campaigning for a yes vote, arguing that this is the best deal they can get, including through newspaper ads. |
| Erin Brockovich, the consumer advocate made famous through her pursuit of a 1993 case against PG&E involving contamination of drinking water, urged wildfire victims to accept the agreement in an opinion article last week in The San Francisco Chronicle. She is a consultant for the law firms of Joseph M. Earley and Watts Guerra LLP, which represent thousands of wildfire victims. | Erin Brockovich, the consumer advocate made famous through her pursuit of a 1993 case against PG&E involving contamination of drinking water, urged wildfire victims to accept the agreement in an opinion article last week in The San Francisco Chronicle. She is a consultant for the law firms of Joseph M. Earley and Watts Guerra LLP, which represent thousands of wildfire victims. |
| With so much effort spent “pounding out the best possible agreement to make people whole,” Ms. Brockovich said in an interview, “to derail it and create more division at the 12th hour will be a travesty.” | With so much effort spent “pounding out the best possible agreement to make people whole,” Ms. Brockovich said in an interview, “to derail it and create more division at the 12th hour will be a travesty.” |
| The deal that some want to change gives the victims half of the $13.5 billion in cash and half in shares of the company that emerges from bankruptcy. In accepting stock, the victims and their lawyers were taking a risk. Even before the coronavirus outbreak, PG&E’s stock was volatile. A major fire involving its equipment could send its shares plunging, leaving victims short. | The deal that some want to change gives the victims half of the $13.5 billion in cash and half in shares of the company that emerges from bankruptcy. In accepting stock, the victims and their lawyers were taking a risk. Even before the coronavirus outbreak, PG&E’s stock was volatile. A major fire involving its equipment could send its shares plunging, leaving victims short. |
| The stock closed at $8.56 on Monday, down from nearly $18 in late February. | The stock closed at $8.56 on Monday, down from nearly $18 in late February. |
| PG&E defended the agreement in a statement on Monday, noting that lawyers representing thousands of victims still backed the deal. The company also said the recent drop in its share price was a result of broader economic anxieties. | PG&E defended the agreement in a statement on Monday, noting that lawyers representing thousands of victims still backed the deal. The company also said the recent drop in its share price was a result of broader economic anxieties. |
| “Since PG&E entered Chapter 11, the company’s primary goal has been to get victims paid fairly and in a timely manner,” the utility said. | “Since PG&E entered Chapter 11, the company’s primary goal has been to get victims paid fairly and in a timely manner,” the utility said. |
| But Kirk Trostle, who lost his home in the Camp Fire, says the company’s plan is “deeply flawed and very risky for all fire victims.” Mr. Trostle was one of the first members of the bankruptcy’s tort claimants committee that represents victims to resign his position. | But Kirk Trostle, who lost his home in the Camp Fire, says the company’s plan is “deeply flawed and very risky for all fire victims.” Mr. Trostle was one of the first members of the bankruptcy’s tort claimants committee that represents victims to resign his position. |
| “I’m not trying to force people to vote for or against the plan,” Mr. Trostle said in an interview. “I want all fire victims to make an educated decision.” | “I’m not trying to force people to vote for or against the plan,” Mr. Trostle said in an interview. “I want all fire victims to make an educated decision.” |
| Adolfo Veronese and Karen Gowins, two other committee members who lost homes to fires started by PG&E equipment, have also resigned. | Adolfo Veronese and Karen Gowins, two other committee members who lost homes to fires started by PG&E equipment, have also resigned. |
| Ms. Gowin’s lawyer, Steven Kane, said that on a call last week involving scores of lawyers for victims of Northern California wildfires caused by PG&E’s equipment, several urged delaying any vote on the settlement to keep their clients from “holding the bag for PG&E’s recklessness and negligence.” | Ms. Gowin’s lawyer, Steven Kane, said that on a call last week involving scores of lawyers for victims of Northern California wildfires caused by PG&E’s equipment, several urged delaying any vote on the settlement to keep their clients from “holding the bag for PG&E’s recklessness and negligence.” |
| Other lawyers say they were not persuaded by those arguments. | Other lawyers say they were not persuaded by those arguments. |
| Gerald Singleton, a lawyer based in San Diego who says he represents 7,000 fire victims in the bankruptcy, told the court in a brief filed Monday that he rejected arguments opposing the settlement. Mr. Singleton said the agreement was the best way for victims to be paid quickly. | Gerald Singleton, a lawyer based in San Diego who says he represents 7,000 fire victims in the bankruptcy, told the court in a brief filed Monday that he rejected arguments opposing the settlement. Mr. Singleton said the agreement was the best way for victims to be paid quickly. |
| Updated July 7, 2020 | |
| The coronavirus can stay aloft for hours in tiny droplets in stagnant air, infecting people as they inhale, mounting scientific evidence suggests. This risk is highest in crowded indoor spaces with poor ventilation, and may help explain super-spreading events reported in meatpacking plants, churches and restaurants. It’s unclear how often the virus is spread via these tiny droplets, or aerosols, compared with larger droplets that are expelled when a sick person coughs or sneezes, or transmitted through contact with contaminated surfaces, said Linsey Marr, an aerosol expert at Virginia Tech. Aerosols are released even when a person without symptoms exhales, talks or sings, according to Dr. Marr and more than 200 other experts, who have outlined the evidence in an open letter to the World Health Organization. | |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. | Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. |
| A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. | A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. |
| The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| “We certainly understand that there are risks and flaws in this plan, as there are in everything,” Mr. Singleton said. “This is really the only opportunity for our clients to get a fair settlement in a reasonable amount of time.” | “We certainly understand that there are risks and flaws in this plan, as there are in everything,” Mr. Singleton said. “This is really the only opportunity for our clients to get a fair settlement in a reasonable amount of time.” |
| Large shareholders behind PG&E’s restructuring plan will probably push back against opponents of the deal. Better terms for the victims would mean worse ones for shareholders, which, according to the most recent records available, include prominent hedge funds like Baupost Group, Abrams Capital Management and Knighthead Capital Management. | Large shareholders behind PG&E’s restructuring plan will probably push back against opponents of the deal. Better terms for the victims would mean worse ones for shareholders, which, according to the most recent records available, include prominent hedge funds like Baupost Group, Abrams Capital Management and Knighthead Capital Management. |
| Because the bankruptcy plan rests on shareholders’ putting $9 billion of new money into PG&E — cash that will help pay victims — the shareholders’ participation is crucial. And they could be particularly resistant to compromise because the recent decline in PG&E’s stock may have left them with large losses on their stakes in the company. | Because the bankruptcy plan rests on shareholders’ putting $9 billion of new money into PG&E — cash that will help pay victims — the shareholders’ participation is crucial. And they could be particularly resistant to compromise because the recent decline in PG&E’s stock may have left them with large losses on their stakes in the company. |
| “If you rattle the cage too much, the deal could collapse,” said Jared A. Ellias, a professor at the University of California’s Hastings College of the Law. | “If you rattle the cage too much, the deal could collapse,” said Jared A. Ellias, a professor at the University of California’s Hastings College of the Law. |
| To get a better deal, the victims would have to change a central feature. Under the current plan, they would get shares valued at 14.9 times estimated future profits. Lawyers for the deal’s opponents are concerned that PG&E’s shares will trade well below that multiple, meaning the victims’ shares — meant to be valued at half the overall $13.5 billion settlement — would be worth much less. Because the shareholders putting in new money would get shares at a much lower valuation, their holdings would in theory have greater protection against losses. | To get a better deal, the victims would have to change a central feature. Under the current plan, they would get shares valued at 14.9 times estimated future profits. Lawyers for the deal’s opponents are concerned that PG&E’s shares will trade well below that multiple, meaning the victims’ shares — meant to be valued at half the overall $13.5 billion settlement — would be worth much less. Because the shareholders putting in new money would get shares at a much lower valuation, their holdings would in theory have greater protection against losses. |
| Increasing how much cash the victims get may be a way to compromise, Mr. Ellias said, adding, “There is still a pathway to make this work.” | Increasing how much cash the victims get may be a way to compromise, Mr. Ellias said, adding, “There is still a pathway to make this work.” |
| PG&E appeared to have cleared the last major hurdle when Gov. Gavin Newsom signed off on the reorganization plan last month after gaining several concessions from the utility, including veto power over new board members and a trigger to sell the company if certain benchmarks were not met. | PG&E appeared to have cleared the last major hurdle when Gov. Gavin Newsom signed off on the reorganization plan last month after gaining several concessions from the utility, including veto power over new board members and a trigger to sell the company if certain benchmarks were not met. |
| The timing of the governor’s support was critical if not pragmatic, since the worsening pandemic has largely halted economic activity and dominated his attention. | The timing of the governor’s support was critical if not pragmatic, since the worsening pandemic has largely halted economic activity and dominated his attention. |