Noteholders of PG&E Corp and a committee for victims of the wildfires that pushed the power producer into bankruptcy filed a formal reorganization plan on Thursday for the company, proposing they get effectively all of its new shares.
The plan, filed with the U.S. Bankruptcy Court in San Francisco over PG&E’s wishes, proposes the noteholders buy $15.5 billion in new shares, giving them 59.3% of equity. The plan also proposes issuing 40.6% new PG&E stock to fund a fire victims trust valued at $12.75 billion.
This month, U.S. bankruptcy Judge Dennis Montali issued an order allowing the noteholders and wildfire victims committee to file a reorganization plan for PG&E after the noteholders offered to put $29.2 billion in new money, in a combination of equity and debt, into the San Francisco-based power producer.
The committee backed the noteholders’ plan because it expected the proposal to provide more than the $8.4 billion in compensation PG&E has proposed for wildfire victims.
PG&E is developing a plan, backed by major shareholders, that would use $34 billion in new debt and $14 billion in equity commitments to reorganize