A group of PG&E Corp. noteholders said in a court filing yesterday that they are ready to invest $29.2 billion into the power producer as part of a reorganization plan that will pay off liabilities from wildfires that drove it to bankruptcy, Reuters reported. The proposed plan will create two trusts, a $14.5 billion trust for compensating individual wildfire victims and an $11 billion trust for paying insurers with subrogation claims against PG&E for payments they had made after the blazes in 2017 and last year, according to the filing in the U.S. Bankruptcy Court in San Francisco. The plan will give the noteholders new debt and a controlling equity stake in a reorganized PG&E. The committee representing the wildfire victims in PG&E’s bankruptcy is supporting the noteholders’ group. PG&E, joined by major shareholders, is opposing efforts by the noteholders to be allowed to file their reorganization plan. The company on Sept. 19 outlined its own plan that will pay $17.9 billion for wildfire claims and caps payouts to victims at $8.4 billion and to insurers at $8.5 billion.
