It's no secret that PG&E has been investigating bankruptcy since the fires. The talks with banks are a standard part of that process. The advantage of bankruptcy is that it wipes out many existing debts, the common stockholders, employee contracts, and most civil judgements against the company. Bankruptcy judges can override nearly all other laws that might apply to the company. Chapter 11 does NOT make the company available for cheap purchase - it's not liquidation - so those who want a public takeover can pound sand. What comes out of Chapter 11 is essentially a new company in possession of the original company's assets but few of its liabilities. Our present President has used it repeatedly.

And the rail connection is tenuous to the point of transparency - that is, practically none.