Wildfire Survivors And Hedge Fund Managers Join Together Against PG&E

iStock/bizoo_n

Wildfire survivors and Hedge Fund managers are joining together in an attempt to takeover PG&E in a court filing. The plan would call on the bondholders to inject $28 billion into the company, of which $24 billion would go into a “fire claims trust” to pay off all wildfire liabilities. Payouts would be in cash and new PG&E stock with the claims trust in control of 40% of the company. Meanwhile, Bondholders supplying the money would gain 59% of PG&E which would take control away from existing shareholders. Earlier this month, PG&E proposed their own plan to exit bankruptcy offering $17.9 billion to pay off Wildfire Liability claims. Since then, an extra $2.4 billion has been added due to a $11 billion settlement with insurance companies.