PG&E creditors propose $35 billion exit plan

BENGALURU: Some creditors of PG&E Corp, including Elliott Management Corp and Pacific Investment Management Co (Pimco), are proposing a $35 billion plan for the California power utility to exit bankruptcy within a year, Bloomberg reported late on Wednesday.
Pimco, Elliott and David Kempner Capital Management have discussed the proposal with California lawmakers and other stakeholders, Bloomberg reported, citing sources familiar with the matter.
The plan is to form a $14 billion cash trust to pay for the claims linked to the wildfires in 2017 and 2018, it said, citing the proposal seen by the news outlet.
The proposal is being pitched on behalf of an ad hoc committee of PG&E’s senior unsecured note-holders and will create a statewide wildfire fund of at least $13 billion. The fund will be financed by statewide bonds, PG&E, other California utilities and state funding sources, according to the report.
PG&E will also be recapitalised through contributions worth $8 billion that will allow it to refinance its debtor-in-possession loan and other maturities, according to Bloomberg. PG&E, Pimco, Elliott and David Kempner did not respond to requests for comment outside regular US business hours. — Reuters