PG&E Corp. shareholders are proposing raising $15 billion in equity to fund a planned reorganization of the power producer facing huge liabilities from California wildfires, according to a company filing, Reuters reported. The proposed fundraising, a rights offering of selling new shares, is the latest effort to rescue PG&E, which sought chapter 11 protection earlier this year after severe wildfires in 2017 and 2018 resulted in more than $30 billion in liabilities. The California utility currently has the sole right to put forward a reorganization plan, although other investors have asked a judge to allow them to do so as well. Hedge funds Knighthead Capital Management and Abrams Capital Management, the shareholders that made the proposal in a letter to PG&E, pledged to purchase a portion of the offered equity if shares are left unsold through a so-called backstop commitment, the filing showed.
