Together victims of the deadly wildfires started by Pacific Gas and Electric and a group of Wall Street hedge funds are working to seize control of the utility company. Lawyers for the victims asked a bankruptcy judge on Monday to consider their takeover bid. [San Francisco Chronicle]
PG&E has a plan in place to pay insurers $11 billion, with a $8.4 billion cap to wildfire victims.
On the other side, bondholders and a bankruptcy committee that represent victims have proposed creating a trust of $14.5 billion to pay the claims of those who lost their homes or loved ones to the fires. Lawyers for the victims argued that PG&E had not offered victims enough money.
The bondholders asked U.S. Bankruptcy Judge Dennis Montali to let them advance their planned acquisition which includes an added $5 billion if a prolonged takeover fight delays payments to victims. Montali did not issue a ruling on Monday, though he said his decision would be quick.