PG&E strikes deal with creditors over restructuring

(Reuters) – Bankrupt California power producer PG&E Corp (N:) said on Wednesday it had reached a deal on its restructuring with creditors, who were pushing for a rival plan.

PG&E said its creditors, led by Elliott Management and Pacific Investment Management Co, would drop their reorganization plan and support PG&E’s proposal, pending approval by a bankruptcy court.

The bondholders had previously opposed PG&E’s reorganization plan and in December came out with an updated proposal that included a sweetened offer to California wildfire victims, no debt at the reorganized holding company and a new board with residents from California forming the majority of directors.

New notes to be issued under PG&E’s plan will save its customers about $1 billion, the company said.

California Governor Gavin Newsom on Wednesday reiterated his objection to the bankrupt utility’s restructuring plan, adding that the company has not done enough to address the concerns that he had raised last month.

PG&E filed for Chapter 11 protection in January, citing potential liabilities in excess of $30 billion from deadly wildfires in 2017 and 2018 linked to its equipment.

Separately, it came under renewed criticism last year for precautionary power outages to guard against the risk of wildfires posed by extremely dry and windy weather.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.