PG&E nears deal with Pimco, Elliott on restructuring plan - Bloomberg
Adds details from Bloomberg report, share movement, PG&E and Pimco comment
Jan 14 (Reuters) - Bankrupt California power producer PG&E Corp PCG.N is nearing a deal with creditors that would entitle them to a mix of equity and new debt if they scrap their rival restructuring plan, Bloomberg reported on Tuesday, citing people familiar with the matter.
Under the deal being negotiated by creditors led by Elliott Management and Pacific Investment Management Co, the investment in the company would replace some of the exit financing that PG&E is proposing as part of its restructuring, the report said.
The bondholders, who have opposed PG&E's reorganization plan, came out in December with an updated proposal that included a sweetened offer to California wildfire victims, no debt at the reorganized holding company and a new board with residents from California forming the majority of directors.
The creditors would also be given the right to take part in the company's financial backstop commitments, a move that could hand them a part of the equity financing in the deal, Bloomberg reported.
PG&E said on Tuesday it has welcomed feedback from stakeholders throughout the Chapter 11 proceedings and hopes to make progress over the next week regarding its reorganization plan.
Pimco declined to comment, while Elliott did not immediately respond to a Reuters request.
PG&E filed for bankruptcy protection in January 2019, citing potential liabilities in excess of $30 billion from deadly wildfires in 2017 and 2018 linked to its equipment.
Shares of PG&E rose as much as 11% to hit a one-month high of $12.30 on Tuesday.
(Reporting by Shanti S Nair in Bengaluru; Editing by Amy Caren Daniel)
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