Cecily A. Dumas

The fate of thousands of plaintiffs rests largely in the hands of Dumas, a bankruptcy specialist.

In March, the newly-named Baker & Hostetler LLP partner was appointed to represent plaintiffs seeking damages as a result of Pacific Gas & Electric Co.’s equipment igniting the state’s two worst wildfires in recorded history. The plaintiffs’ claims could exceed $30 billion.

Specializing in debt restructuring and insolvency with a focus on creditors’ rights, plaintiffs’ attorneys in the pending litigation feel like they landed on a fierce advocate who will not let PG&E get away with anything, according to Michael Danko of Danko Meredith APC.

Dumas did not skip a beat raising issues before U.S. Bankruptcy Judge Dennis Montali with PG&E’s short term plan to keep the embattled utility running. In re: PG&E Corp., 19-30088 (N.D. Cal., filed Jan. 31, 2019).

PG&E secured approval to tap into a $5.5 billion loan to help maintain services but not before Dumas pushed for more time to restructure the deal.

Dumas said she was concerned about the court losing oversight of the utility’s bankruptcy if it defaults on the loan, which would be triggered if it is found potentially liable for another wildfire or if a trustee is appointed to replace current leadership.

“[The terms of the financing] just doesn’t match the reality of the situation,” she said, adding whether PG&E will get out of the 2019 fire season remains a question.

PG&E eventually secured the financing, but Dumas set the stage for the next battle she is fighting concerning the utility requesting approval to pay up to $350 million in employee bonuses. Montali twice passed on making a decision after arguments from Dumas and another BakerHostetler attorney.

“She is one of the foremost experts in bankruptcy law in the Northern District of California,” said Eric E. Sagerman, manager partner of BakerHostetler’s Los Angeles office.

Before joining BakerHostetler, while still a partner at Pillsbury Winthrop Shaw Pittman LLP, Dumas oversaw the chapter 11 reorganization of Violin Systems LLC.

Despite having upwards of $26 million in unsecured debt, the computer data storage manufacturer emerged from bankruptcy just five months later after it was sold to a private investment fund for $15 million. In re: Violin Memory Inc., 16-12782 (Dist. Del., filed Dec. 14, 2016).

— Winston Cho