Power producer PG&E Corp said on Friday that it is evaluating a proposal from hedge funds Knighthead Capital Management and Abrams Capital Management to provide equity capital commitments supporting a plan to reorganize the company, Reuters reported. Shareholders Knighthead Capital and Abrams in a letter to PG&E on Thursday proposed raising $15 billion in equity to fund a planned reorganization of the power producer, which is facing huge liabilities from California wildfires. The proposed fundraising, a rights offering of 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. Knighthead and Abrams pledged to purchase a portion of the offered equity if shares are left unsold through a so-called backstop commitment.
