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Pimco, Other PG&E Creditors Said to Pitch $35 Billion Plan

  • Pimco, Elliott, Davidson Kempner proposing a bankruptcy exit
  • Plan would establish $14 billion cash trust for fire claims
The exterior of Pacific Gas and Electric Corp. (PG&E) headquarters in San Francisco, California, U.S.

The exterior of Pacific Gas and Electric Corp. (PG&E) headquarters in San Francisco, California, U.S.

Photographer: David Paul Morris/Bloomberg
Updated on

Some of the biggest players in distressed debt are proposing a $35 billion plan that would allow California utility giant PG&E Corp. to emerge from bankruptcy within a year, according to people familiar with the matter.

Pacific Investment Management Co., Elliott Management Corp. and Davidson Kempner Capital Management have been meeting with California lawmakers and other stakeholders to discuss the proposal, the people said, asking not to be identified because the discussions are private. The plan would establish a $14 billion cash trust to pay for claims tied to the deadly 2017 and 2018 wildfires that forced the utility to declare bankruptcy, according to the proposal seen by Bloomberg News.