PG&E stock slides on plan to exit bankruptcy, pay wildfire claims

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PG&E stock slides on plan to exit bankruptcy, pay wildfire claims
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Shares of PG&E Corp fell on Tuesday after the California power producer unveiled...

FILE PHOTO: PG&E crew work to repair damage caused by the Camp Fire in Paradise, California, U.S. November 21, 2018. REUTERS/Elijah Nouvelage/File Photo

The plan filed in U.S. Bankruptcy Court in San Francisco includes payments capped at $8.4 billion for wildfire victims, payments capped at $8.5 billion for reimbursing insurers that had paid victims and a $1 billion settlement with local governments. Court documents showed that Knighthead Capital Management was prepared to buy up to $1 billion of the company’s stock on behalf of funds it manages. Funds associated with Abrams Capital Partners, Riva Capital Partners and Whitecrest Partners were prepared to invest $500 million combined in PG&E stock, according to court documents.

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