PG&E to offer $13.5 billion in compensation to wildfire victims: Bloomberg

Reuters
Updated
FILE PHOTO: PG&E works on power lines to repair damage caused by the Camp Fire in Paradise

(Reuters) - Bankrupt California power producer PG&E Corp is offering $13.5 billion in compensation to wildfire victims as part of a restructuring plan, Bloomberg reported on Monday, citing people with knowledge of the situation.

The same amount has been offered to the victims by a rival group of noteholders led by Pacific Investment Management Co and Elliott Management Corp, according to the report https://www.bloomberg.com/news/articles/2019-11-11/pg-e-offering-13-5-billion-in-compensation-to-wildfire-victims.

PG&E sought Chapter 11 bankruptcy protection in January after massive wildfires struck Northern California in 2017 and 2018, which were blamed on its equipment.

A lawyer for the committee of wildfire victims said last month their claims may be worth $13.5 billion, Reuters reported.

PG&E had previously proposed to provide $8.4 billion in compensation, but the victims sided with the noteholders in the hopes of getting more money.

PG&E and the victims were in talks on Monday, Bloomberg reported.

PG&E did not immediately respond to Reuters request for a comment.

(Reporting by Shariq Khan in Bengaluru; Editing by Amy Caren Daniel)