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PG&E Fire Victims, Bondholders Offer Bankruptcy Exit Plan

SAN FRANCISCO (AP) -- Pacific Gas and Electric Co. bondholders and wildfire victims have joined forces and proposed their own reorganization plan as they try to wrest control of the bankrupt San Francisco-based company from its stockholders.

The San Francisco Chronicle reports the two groups told PG&E's bankruptcy judge Thursday their proposal would include a $24 billion settlement to pay everyone owed money because of fires started by the company's power lines in recent years.

PG&E has offered to pay individual victims from a trust capped at $8.4 billion and reached settlements with insurers and local governments of $11 billion and $1 billion, respectively.

According to their plan, bondholders would invest $28.4 billion in exchange for a 58.8% stake in the utility's parent PG&E Corp., diluting the firms who currently own shares of the company.

© Copyright 2019 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.

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