Contrary to the Bankruptcy Court’s ruling, the District Court concluded that California's liquidated damages statute does not apply to the default interest rate provision.

On January 29th, PG&E Corporation and its regulated utility subsidiary, Pacific Gas and Electricity Company (collectively, “PG&E”), commenced bankruptcy cases in the Bankruptcy Court for the Northern District of California. Here are nine things to watch for in the PG&E bankruptcy.

This week, Pacific Gas & Electric (“PG&E”), the state’s largest utility, filed for Chapter 11 bankruptcy protection in the Northern District of California. PG&E claims over $50 billion in assets and $50 billion in liabilities, but has not yet filed the disclosures that identify its contract counterparties, creditors and other business partners who have an interest in its bankruptcy case.

After months of speculation, it is now official : PG&E (both the parent, PG&E Corporation, and its subsidiary, Pacific Gas & Electric Company), having faced extraordinary challenges relating to catastrophic wildfires in 2017 and 2018, has announced that a voluntary bankruptcy filing “is appropriate, necessary and in the best interests of all stakeholders, including wildfire claimants, PG&E’s other creditors and shareholders, and is ultimately the only viable option to restore PG&E’s financial stability to fund ongoing operations and provide safe service to customers.” As

On January 14, 2019, facing “billions of dollars in liability claims from two years of deadly wildfires,”[i] PG&E Corporation and its regulated utility subsidiary, Pacific Gas and Electric Company, reported that they expect to file petitions under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Northern District of California on or about January 29, 2019.

On January 13, 2019, PG&E announced that it would be filing a petition on January 29, 2019, under Chapter 11 of the bankruptcy code. The advance notice was required pursuant to a new California law requiring 15 days’ notice to employees of a change in control (including bankruptcy) of the employer. PG&E’s impending bankruptcy will present challenges for those doing business with PG&E on a continuing basis.

On January 9, 2019, California Attorney General Xavier Becerra filed a motion with the U.S.

In re Altadena Lincoln Crossing LLC, 2018 Westlaw 3244502 (Bankr. C.D. Cal.), a California bankruptcy court held that a default interest rate provision was an unenforceable penalty under applicable California law because, among other things, the applicable loan agreements did not contain an estimate of the probable costs to the lender resulting from the debtor’s default.

Background

California Governor Jerry Brown recently signed a bill amending the Rosenthal Fair Debt Collection Practices Act and the California Code of Civil Procedure. The new law, which takes effect January 1, requires disclosures in any communication by a debt collector attempting to collect a time-barred debt. Because the RFDCPA defines the term "debt collector" to include first-party creditors in addition to third-party creditors, auto dealers and finance companies should pay attention.

Los Angeles Lawyer July/August 2018

BANKING, LENDING, AND INSOLVENCY RESTRICTIONS RELEGATE THE LEGITIMATE CANNABIS INDUSTRY IN CALIFORNIA TO AN ALL-CASH BUSINESS, VULNERABLE TO CRIME