PG&E Corp. said today that it has formalized an $11 billion settlement with insurance companies over wildfire claims and denounced an alternative bankruptcy plan made last week by bondholders, the Wall Street Journal reported. The deal covers insurance carriers and hedge funds that were seeking compensation from PG&E for payouts insurers made to homeowners and businesses in connection with fires sparked by the utility’s equipment. PG&E announced the settlement agreement in principle earlier this month. Last week, bondholders, including Elliott Management Corp. and the official committee representing fire victims asked to put a chapter 11 plan on the table that would compete with the company’s own restructuring framework. Bondholders must get court permission to formally file a competing chapter 11 plan. The California utility company said today that the Elliott proposal would cost all PG&E customers billions of dollars in additional interest payments over 15 years and provide an “unfair windfall” for noteholders and plaintiffs’ attorneys.
