PG&E Corp. bondholders have challenged the California utility over control of its bankruptcy proceeding, offering Wall Street’s version of a solution to wildfire liabilities estimated at $30 billion or more, WSJ Pro Bankruptcy reported. Investors including Elliott Management Corp. and Pacific Investment Management Co. filed court papers outlining a chapter 11 plan that would include up to $18 billion for victims of blazes linked to PG&E’s equipment. Bondholders say that they would raise $30 billion, most of it in the form of equity investment, to help PG&E pay off its damages, according to court papers. Ratepayers wouldn’t pay more, California’s green power future would be assured and Gov. Gavin Newsom (D) would see the state’s largest utility exit from bankruptcy by next year, if PG&E and its creditors accept the offer, the bondholders say. PG&E is looking at all options, according to a statement from the company.
