Company Bankrupt – level 3
23-03-2020 07:00
A court has approved Pacific Gas & Electric’s (PG&E) $23 billion dollar bankruptcy financing package. The company’s plan to raise the money to get out of bankruptcy was approved on Monday.
PG&E filed for bankruptcy protections last year, after its equipment was linked to multiple destructive wildfires in California in 2017 and 2018. The California governor rejected the plan at first; however, he changed his mind when the company attracted investors to buy up billions of dollars in company stock.
PG&E needs the money to help it pay off settlements with wildfire victims, insurers and government agencies.
Difficult words: bankruptcy (a situation in which a business or a person becomes unable to pay debts), stock (parts of the ownership of a company that people can buy), settlement (an official payment of money that helps end an argument or conflict).
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