PG&E Corp. bondholders and wildfire victims teamed up to offer a competing bankruptcy recovery plan for the California utility that would all but wipe out its stockholders.
If a judge lets the coalition’s plan go forward, PG&E could lose control of the bankruptcy and its own reorganization plan, which envisions letting stockholders keep a significant stake.
PG&E shares slid 4.9% on Friday. Earlier in the day they were down more than 10%.
The bondholders — including Elliott Management Corp. and Pacific Investment Management Co. — and the committee representing fire victims said their new proposal includes a $24-billion settlement to pay all claims from fires blamed on PG&E’s equipment. That’s billions of dollars more than PG&E, which is the parent of Pacific Gas & Electric, has offered to those who lost loved ones and homes in some of the most destructive fires in California history.
PG&E bondholders and fire victims offer plan that would hit stockholders hard, by Bloomberg Staff, The Los Angeles Times, September 20, 2019.