A bondholder proposal to address the wildfire damage claims that drove PG&E Corp. into bankruptcy faces headwinds from wildfire victims, the Wall Street Journal reported. Major groups of victims say that they weren’t consulted on a plan, which includes $14 billion to cover damages that PG&E estimated at $30 billion or more. Lawyers for the official committee that represents wildfire victims and another large group of fire victims said the bondholders haven’t talked to them about the proposal, which was reported Wednesday by Bloomberg. The bondholders, mostly New York-based hedge funds, have been courting lawmakers and unions, pitching their ideas for saving California’s largest utility. Bondholders are offering $14 billion in cash to pay damages, counting on discounted payoffs to insurance companies to reduce PG&E’s overall liability.
