PG&E May Pay $1 Billion in Financing Fees to Banks, Backers
- Big fees, some non-refundable, irk creditors and fire victims
- Deal lasts only a year, so another round might be needed, too
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PG&E Corp. creditors say the utility could wind up paying bankers and certain stock owners $1 billion in fees for arranging a bankruptcy exit plan that wildfire victims say favors Wall Street over burned-out neighborhoods.
The estimates came in court filings from Alan Stone, an attorney for the official committee of unsecured creditors, who said in a Nov. 4 letter that the bill could total $900 million and asked for justification. Another estimate from David Richardson, a lawyer for the official fire victims committee, said the fees could top $1 billion, with the bulk going to equity holders who help with the financing.