PG&E nearing $13.5 billion deal with wildfire victims – BBG

FILE PHOTO: PG&E works on power lines to repair damage caused by the Camp Fire in Paradise, California, U.S. November 21, 2018. To match Special Report USA-FUNDS/INDEX REUTERS/Elijah Nouvelage

(Reuters) – Bankrupt California power producer PG&E Corp (PCG.N) is close to finalizing terms for a $13.5 billion payout to victims of wildfires ignited by its power lines, Bloomberg reported on Wednesday, citing people familiar with the matter.

Shares of the company rose about 13% to $9.62.

The payment will be made half in cash and the rest in stock in the newly reorganized utility, the report said.

The settlement could mark a major step towards a resolution of the company’s bankruptcy proceedings and give it a big win over a rival group of noteholders that so far had the support of a committee representing the victims.

PG&E said it will continue to work with individual claimants to “fairly and reasonably resolve their claims”.

Reporting by Arunima Kumar in Bengaluru; Editing by Arun Koyyur

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