Deals
PG&E Is Near $13.5 Billion Deal With Wildfire Victims
- 50% payment to be in cash, 50% in stock in reorganized utility
- Deal would be key step toward resolving company’s bankruptcy
A home burns as the Camp fire tears through Paradise, California on Nov. 8, 2018.
Photographer: Josh Edelson/AFP via Getty ImagesThis article is for subscribers only.
PG&E Corp. is close to finalizing terms for a $13.5 billion payout to victims of wildfires ignited by its power lines, a key step toward resolving the biggest utility bankruptcy in U.S. history, according to people familiar with the matter.
The California-based power giant would pay half in cash and the rest in stock in the newly reorganized utility, the people said, asking not to be identified because the matter is private. The cash portion would be paid with a lump sum upfront, and the remainder would be paid over 18 months, they said. No final agreement has been reached, and the talks could still fall apart.