Numerous reports indicate PG&E is in negotiations with lenders about debt restructuring. "They're going to try to get people to accept less than what is owed," said CBS News Senior Business Analyst Jill Schlesinger in a KCBS Radio interview.
In its statement announcing the likely bankruptcy filing, PG&E said it expected the process to "support the orderly, fair and expeditious resolution of its potential liabilities resulting from the 2017 and 2018 Northern California wildfires." Those liabilities are estimated to be as high as $30 billion, while the company's wildfire insurance coverage represents only a small fraction of that amount.
The Camp Fire alone was recently pegged by German insurance giant MunichRe as the world's costliest disaster of 2018. The company said overall losses in the Camp Fire will reach $16.5 billion.