June 21, 2019 / 5:27 PM / a month ago

PG&E to float $31 billion restructuring plan - Bloomberg

FILE PHOTO: A PG&E truck carrying an American Flag drives past PG&E repair trucks in Paradise, California, U.S. November 21, 2018. REUTERS/Elijah Nouvelage

(Reuters) - Power producer PG&E Corp will propose a $31 billion (£24.3 billion) bankruptcy restructuring plan that will include two funds worth a total of $34 billion to cover past and future wildfire claims, Bloomberg reported here on Friday.

Asked by Reuters about the plan, a PG&E spokesman said: “We are looking at all options when it comes to working with the governor and legislature, and are committed to resolving wildfire victims’ claims fairly and expeditiously.”

Shares of the company, which is currently hosting its annual general meeting of shareholders, were down nearly 1 percent in a choppy reaction to the report which saw the stock both rise and fall.

On Tuesday, San Francisco-based PG&E said that as part of its reorganization it would pay $1 billion to more than a dozen local governments in California affected by wildfires in recent years.

The Bloomberg report said there would be two funds, one of $14 billion to cover past claims and one of $20 billion to cover future claims, under the plan which it said was expected to be filed formally in August.

PG&E sought Chapter 11 bankruptcy protection in January after facing liabilities of more than $30 billion in the wake of Camp Fire, California’s deadliest and most destructive wildfire in recent times.

The Camp Fire killed more than 85 people, destroyed over 14,600 houses, mobile homes and other housing units, according to California’s Department of Finance.

Reporting by Debroop Roy in Bengaluru; editing by Patrick Graham

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