7/11, 8:04 PM (Source: TeleTrader)
more TeleTrader news

PG&E's bondholders may take hold of the company - report

Californian lawmakers are expected to side with Pacific Gas and Electric Co.'s (PG&E) bondholders in the ongoing wildfire-liability bill with the company's shareholders, the Wall Street Journal reported on Thursday. According to the people familiar with the process, one point of the contended bill may decide which of the two groups will control the company after it completes its bankruptcy process.

The ultimate decision will not come at the expense of wildfire victims or electricity customers, same sources said. For PG&E to emerge from bankruptcy, it must have funding to pay out claims from insurers and victims hurt by 2018 wildfires, which have killed more than 80 people.

PG&E filed for bankruptcy in January after the company was threatened with $30 billion in potential liabilities. After that, the firm's bondholders proposed to invest as much as $18 billion to meet the financial obligations, while at the same time pushing for the removal of PG&E’s exclusive right to file a restructuring plan for the company.

Breaking the News / MA