PG&E Fire Victims, Bondholders Offer Bankruptcy Exit Plan
SAN FRANCISCO (AP) -- Pacific Gas and Electric Co. bondholders and wildfire victims have joined forces and proposed their own reorganization plan as they try to wrest control of the bankrupt San Francisco-based company from its stockholders.
The San Francisco Chronicle reports the two groups told PG&E's bankruptcy judge Thursday their proposal would include a $24 billion settlement to pay everyone owed money because of fires started by the company's power lines in recent years.
PG&E has offered to pay individual victims from a trust capped at $8.4 billion and reached settlements with insurers and local governments of $11 billion and $1 billion, respectively.
According to their plan, bondholders would invest $28.4 billion in exchange for a 58.8% stake in the utility's parent PG&E Corp., diluting the firms who currently own shares of the company.
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