Upping the Ante: PG&E Bondholders Offer $29.2B for Wildfire Victims

Raising pressure on Pacific Gas and Electric to pay more money to wildfire victims, a group of bondholders has offered to invest $29.2 billion to settle the embattled utility's wildfire-related liabilities in exchange for a majority stake in the company.

FILE - In this Nov. 15, 2018, file photo, residences leveled by the wildfire line a neighborhood in Paradise, Calif. The massive wildfire that killed dozens of people and destroyed thousands of homes has been fully contained after burning for more than two weeks, authorities said Sunday, Nov. 25. (AP Photo/Noah Berger, File)

SAN FRANCISCO (CN) – Raising pressure on Pacific Gas and Electric to pay more money to wildfire victims, a group of bondholders has offered to invest $29.2 billion to settle the embattled utility’s wildfire-related liabilities in exchange for a majority stake in the company.

The latest proposal pitched by an unlikely alliance of wildfire victims and Wall Street hedge funds Wednesday night exceeds the $24 billion offered in the groups’ previous plan and the $18 billion cap on wildfire claims proposed by PG&E.

PG&E denounced the competing plan in a statement, saying it would enrich bondholders, including New York-based investment firm Elliot Management, by entitling them to interest “well in excess of what is required by law” at the expense of PG&E customers.

“This is about Elliott and others attempting to manipulate and profit from the Chapter 11 process,” PG&E spokesman James Noonan said by email.

A hearing on the motion to terminate PG&E’s exclusive right to propose its own bankruptcy plan so that the competing $29.2 billion plan may be considered is scheduled for Oct. 7 in San Francisco.

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Categories / Energy, Financial, Regional

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