'PG&E’s Settlement With Wildfire Victims Faces Crucial Vote' diff viewer (4/5)

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PG&E’s Settlement With Wildfire Victims Faces Crucial Vote	PG&E’s Settlement With Wildfire Victims Faces Crucial Vote
2020-06-05 16:30:34 UTC	2020-06-09 14:18:34 UTC (4 days later)
Pacific Gas & Electric and thousands of California families who lost homes or loved ones in fires caused by the utility’s equipment reached a $13.5 billion settlement in December, seemingly putting off a lengthy and fraught legal battle. The deal would allow the company to resolve its bankruptcy and provide homeowners money to rebuild.	Pacific Gas & Electric and thousands of California families who lost homes or loved ones in fires caused by the utility’s equipment reached a $13.5 billion settlement in December, seemingly putting off a lengthy and fraught legal battle. The deal would allow the company to resolve its bankruptcy and provide homeowners money to rebuild.
But as a crucial deadline for a formal vote on the agreement nears, some victims are pressing the company to make changes.	But as a crucial deadline for a formal vote on the agreement nears, some victims are pressing the company to make changes.
A group of victims and their lawyers say they are worried that they will receive a lot less than $13.5 billion since half of that amount will be paid out in shares in PG&E. The company’s stock price has been whiplashed as the economy has been upended by the coronavirus pandemic. In addition, some victims said a leading lawyer who negotiated the deal on behalf of thousands of victims appeared to have a conflict of interest: He has borrowed money from a loan facility funded by two investment firms that purchased claims against PG&E, own stock in the utility, invested in PG&E bonds or helped finance its bankruptcy.	A group of victims and their lawyers say they are worried that they will receive a lot less than $13.5 billion since half of that amount will be paid out in shares in PG&E. The company’s stock price has been whiplashed as the economy has been upended by the coronavirus pandemic. In addition, some victims said a leading lawyer who negotiated the deal on behalf of thousands of victims appeared to have a conflict of interest: He has borrowed money from a loan facility funded by two investment firms that purchased claims against PG&E, own stock in the utility, invested in PG&E bonds or helped finance its bankruptcy.
Two-thirds of the votes cast by the roughly 70,000 victims, most of whom live in Northern California, by May 15 must be for the deal for it to be approved. If the victims don’t ratify the deal, PG&E might not be able to resolve its bankruptcy by June 30, a deadline state lawmakers set for the company to qualify for a $20 billion wildfire fund that will help pay for future wildfire claims against privately owned utilities.	Two-thirds of the votes cast by the roughly 70,000 victims, most of whom live in Northern California, by May 15 must be for the deal for it to be approved. If the victims don’t ratify the deal, PG&E might not be able to resolve its bankruptcy by June 30, a deadline state lawmakers set for the company to qualify for a $20 billion wildfire fund that will help pay for future wildfire claims against privately owned utilities.
Bankruptcy court “votes are almost never cliffhangers,” said Jared Ellias, a professor at the University of California’s Hastings College of the Law. With thousands of victims casting votes, it’s hard to predict the result, he added, especially when factions are using social media, videoconferences and other methods to campaign for their desired outcome.	Bankruptcy court “votes are almost never cliffhangers,” said Jared Ellias, a professor at the University of California’s Hastings College of the Law. With thousands of victims casting votes, it’s hard to predict the result, he added, especially when factions are using social media, videoconferences and other methods to campaign for their desired outcome.
“There are networks within the world of fire survivors, and that enables them to coordinate, if they want to, a ‘No’ vote campaign,” Mr. Ellias said.	“There are networks within the world of fire survivors, and that enables them to coordinate, if they want to, a ‘No’ vote campaign,” Mr. Ellias said.
PG&E, the largest utility in California and one of the biggest in the country, needs access to the state fund because its equipment has set off more devastating wildfires than any other company in the state as measured by liability claims against the company. The utility’s poorly maintained transmission grid ignited California’s deadliest wildfire in November 2018, the Camp Fire, which killed 85 people and destroyed the town of Paradise.	PG&E, the largest utility in California and one of the biggest in the country, needs access to the state fund because its equipment has set off more devastating wildfires than any other company in the state as measured by liability claims against the company. The utility’s poorly maintained transmission grid ignited California’s deadliest wildfire in November 2018, the Camp Fire, which killed 85 people and destroyed the town of Paradise.
Victims who oppose the settlement and their lawyers say they want PG&E to either pay them the entire $13.5 billion in cash or guarantee that the stock portion will be worth no less than $6.75 billion. In addition, they want the company to formally commit to a timeline for making the payments; the current deal gives PG&E discretion on when it has to pay victims.	Victims who oppose the settlement and their lawyers say they want PG&E to either pay them the entire $13.5 billion in cash or guarantee that the stock portion will be worth no less than $6.75 billion. In addition, they want the company to formally commit to a timeline for making the payments; the current deal gives PG&E discretion on when it has to pay victims.
“The PG&E plan was a bad deal to begin with, but after this crisis, it’s beyond bad,” said Steven Kane, a San Diego lawyer who represents 300 victims. “It’s absolutely terrible and frightening.”	“The PG&E plan was a bad deal to begin with, but after this crisis, it’s beyond bad,” said Steven Kane, a San Diego lawyer who represents 300 victims. “It’s absolutely terrible and frightening.”
William Abrams, an entrepreneur and management consultant, lost his house in the 2017 Tubbs Fire that swept through Santa Rosa, north of San Francisco. He opposes the settlement and has been voicing his concerns to other homeowners.	William Abrams, an entrepreneur and management consultant, lost his house in the 2017 Tubbs Fire that swept through Santa Rosa, north of San Francisco. He opposes the settlement and has been voicing his concerns to other homeowners.
“In all the groups, there’s just heightened anxiety,” Mr. Abrams, 49, said.	“In all the groups, there’s just heightened anxiety,” Mr. Abrams, 49, said.
PG&E declined to say if it was willing to adjust the settlement to win over people like Mr. Abrams. Each victim — a resident or business — has a single vote.	PG&E declined to say if it was willing to adjust the settlement to win over people like Mr. Abrams. Each victim — a resident or business — has a single vote.
“Voting by claimants is underway, and we continue to work diligently to obtain approval for our plan of reorganization by the bankruptcy court as soon as possible so victims will be paid fairly and quickly,” the company said in a statement. “PG&E’s plan is the best method for victims to receive compensation.”	“Voting by claimants is underway, and we continue to work diligently to obtain approval for our plan of reorganization by the bankruptcy court as soon as possible so victims will be paid fairly and quickly,” the company said in a statement. “PG&E’s plan is the best method for victims to receive compensation.”
People opposed to the settlement say their concerns were only heightened when they recently learned that a lawyer, Mikal Watts, who claims to represent 16,000 fire victims, acknowledged receiving a line of credit funded by two investment firms with financial ties to PG&E.	People opposed to the settlement say their concerns were only heightened when they recently learned that a lawyer, Mikal Watts, who claims to represent 16,000 fire victims, acknowledged receiving a line of credit funded by two investment firms with financial ties to PG&E.
Mr. Watts, a trial lawyer from San Antonio, has amassed more clients in the PG&E bankruptcy than any other lawyer. He advertised on billboards and in newspapers in areas that suffered fires in recent years, and tapped the environmental activist Erin Brockovich, who gained fame for her work on a water pollution case against PG&E, as a consultant to help recruit clients. Mr. Watts said that he did not pay her directly but that part of the team of lawyers he works with contracted with her.	Mr. Watts, a trial lawyer from San Antonio, has amassed more clients in the PG&E bankruptcy than any other lawyer. He advertised on billboards and in newspapers in areas that suffered fires in recent years, and tapped the environmental activist Erin Brockovich, who gained fame for her work on a water pollution case against PG&E, as a consultant to help recruit clients. Mr. Watts said that he did not pay her directly but that part of the team of lawyers he works with contracted with her.
In a December town hall at the Flamingo Resort in Santa Rosa, Mr. Watts told some of his clients that he had been offered a credit line by Stifel, an investment bank, according to a video of the event. He said he later learned that Stifel sold some of that debt to Centerbridge Partners and Apollo Advisors, private equity firms that had bought shares and bonds in PG&E. In an interview, he said the credit line was $100 million over four years.	In a December town hall at the Flamingo Resort in Santa Rosa, Mr. Watts told some of his clients that he had been offered a credit line by Stifel, an investment bank, according to a video of the event. He said he later learned that Stifel sold some of that debt to Centerbridge Partners and Apollo Advisors, private equity firms that had bought shares and bonds in PG&E. In an interview, he said the credit line was $100 million over four years.
Centerbridge, a PG&E shareholder, has committed to buying new PG&E stock as part of the company’s restructuring plan. Centerbridge also purchased some insurance claims for wildfires caused by PG&E equipment, as did Apollo, which was also an investor in PG&E bonds. PG&E has agreed to settle the insurance claims for $11 billion in cash.	Centerbridge, a PG&E shareholder, has committed to buying new PG&E stock as part of the company’s restructuring plan. Centerbridge also purchased some insurance claims for wildfires caused by PG&E equipment, as did Apollo, which was also an investor in PG&E bonds. PG&E has agreed to settle the insurance claims for $11 billion in cash.
Mr. Watts said he had privately met with Gavin Baiera, a senior managing director at Centerbridge, who has represented the firm in negotiations about PG&E’s bankruptcy. He described the meetings as social interactions.	Mr. Watts said he had privately met with Gavin Baiera, a senior managing director at Centerbridge, who has represented the firm in negotiations about PG&E’s bankruptcy. He described the meetings as social interactions.
Mr. Watts said that he did not see a conflict of interest and that he had disclosed his loan from Centerbridge and Apollo to clients. “I got the loan from Stifel,” Mr. Watts said. “Like most general credit facilities, those facilities are syndicated and may be assigned out without the knowledge or consent of the borrower.”	Mr. Watts said that he did not see a conflict of interest and that he had disclosed his loan from Centerbridge and Apollo to clients. “I got the loan from Stifel,” Mr. Watts said. “Like most general credit facilities, those facilities are syndicated and may be assigned out without the knowledge or consent of the borrower.”
Updated June 5, 2020	Updated June 5, 2020
	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.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.	The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.	Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.	Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.	States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
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.
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.
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.)
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.	Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.	The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
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.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.	If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
Mr. Baiera did not respond to a request for comment.	Mr. Baiera did not respond to a request for comment.
Apollo said in a statement that there was no conflict of interest because lenders like it had no ability to influence Mr. Watts. Apollo said that it owned less than $20 million of the credit line to Mr. Watts’s law firm and that the money was not dedicated to its work on the PG&E bankruptcy.	Apollo said in a statement that there was no conflict of interest because lenders like it had no ability to influence Mr. Watts. Apollo said that it owned less than $20 million of the credit line to Mr. Watts’s law firm and that the money was not dedicated to its work on the PG&E bankruptcy.
Still, Mr. Abrams contends that Mr. Watts’s relationship with Centerbridge and Apollo could have compromised his representation of wildfire victims. Mr. Abrams and several lawyers representing other victims have asked the federal judge overseeing the bankruptcy, Dennis Montali, to review funding of lawyers in the case for potential conflicts.	Still, Mr. Abrams contends that Mr. Watts’s relationship with Centerbridge and Apollo could have compromised his representation of wildfire victims. Mr. Abrams and several lawyers representing other victims have asked the federal judge overseeing the bankruptcy, Dennis Montali, to review funding of lawyers in the case for potential conflicts.
At least one wildfire victim, Debbie Pool, said she had fired Mr. Watts’s firm because his associates were pushing her to accept the settlement, including by repeatedly calling her. Ms. Pool, who works as an aide for students with special needs, lost the Paradise home she rented in the Camp Fire.	At least one wildfire victim, Debbie Pool, said she had fired Mr. Watts’s firm because his associates were pushing her to accept the settlement, including by repeatedly calling her. Ms. Pool, who works as an aide for students with special needs, lost the Paradise home she rented in the Camp Fire.
“The more I read the proposed settlement, the more disturbed I am,” said Ms. Pool, 52.	“The more I read the proposed settlement, the more disturbed I am,” said Ms. Pool, 52.
Mr. Watts said his firm had told clients that they could vote as they desired.	Mr. Watts said his firm had told clients that they could vote as they desired.