Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

PG&E creditors offer California wildfire victims $13.5 billion in cash upfront

Stock MarketsDec 21, 2019 01:55AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

By Kanishka Singh

(Reuters) - PG&E Corp's (N:PCG) creditors have sweetened their offer to California wildfire victims, saying they are now prepared to pay $13.5 billion in cash upfront, according to a letter sent on Friday to state governor Gavin Newsom.

Current terms of the settlement deal, approved by a U.S. bankruptcy judge on Tuesday, call for half of the settlement to be financed with stock in a newly reorganized PG&E.

In the letter, the bondholders led by Elliott Management said their latest proposals will make sure individual victims "are prioritized, as they should be" and will address demands Newsom had raised earlier.

Newsom said on Dec. 13 that the settlement had lacked major changes in governance and tougher safety enforcement mechanisms mandated under the state wildfire statute. It would also leave the company with a weakened capital structure and "limited ability to withstand future financial and operational headwinds."

The new plan calls for no debt at the reorganized holding company and a new board with residents from California forming the majority of directors.

It also allows for a takeover of PG&E by the state if the company is found to have caused any single future wildfire that destroys more than 5,000 structures.

PG&E said after the disclosure of the letter that it is continuing to talk with the stakeholders. Newsom's office did not immediately respond to a request for comment after business hours on Friday.

PG&E said earlier it had reached a deal with labor, safety and customer advocacy groups calling for regulators to allow PG&E to implement some rate increases for funding wildfire-prevention efforts and safety improvements.

A term sheet submitted with Friday's letter showed utility customer rate increases will be capped at 3% through 2023.

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.

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

PG&E creditors offer California wildfire victims $13.5 billion in cash upfront
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
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.
Continue with Google
or
Sign up with Email