Camp Leader area leader weighs on fire victims, PG&E battle
Billionaire hedge fund executives fight on Capitol – over PG & E's future. Victims of the campfire and other fire spirits could tip the balance. Here comes Assembly Leader James Gallagher.
billionaire hedge fund executives are fighting for the Capitol – over PG & E's future. Victims of the campfire and other fire spirits could tip the balance. Here comes Assembly Leader James Gallagher.
The City of San Francisco has offered to buy PG&E Corp.'s electric operations in the city for $ 2.5 billion in a move that could throw a dramatic wrinkle in the tool's bankruptcy case.
Mayor London Breed, in a statement released by the city on Sunday, called the offer "competitive, fair and fair" and said it would "provide financial stability for PG&E."
The bid comes at the heart of a key element of PG & E's bankruptcy: The company is scheduled to file a Chapter 11 reorganization plan Monday, including a disposition to repay billions of commitments from wildfires 2017 and 2018. The tool suffered a significant setback Friday When it was forced to recognize that a tax-free government bond plan, designed to raise money to pay burns, was dead in the legislation at least until January.
The company immediately brushed off the city's offerings, telling the San Francisco Chronicle that selling assets to San Francisco was not in the "best interest of our customers and stakeholders." But it added that it is willing to discuss the problem with the city.
In a letter to PG&E, dated Friday, Breed and City Attorney Dennis Herrera said the agreement would give the ailing tool a "substantial cash introduction."
San Francisco has been studying a possible takeover of PG & E's assets in the city ever since the tool filed for Chapter 11 bankruptcy in January, weighing billions of dollars in debt obligations.
A group of hedge funds that control about half of PG & E's shares has pledged up to $ 15 billion to help pay claims and fund the company's exit from bankruptcy. At the same time, the company hoped to secure support from the legislature for a plan to issue up to $ 20 billion for fire claims through a low-interest tax-free bond offering. The company said the shareholders would repay the debt out of future profits.
The plan died, at least for this year, in part because a competing group of hedge funds, led by PG & E's bondholders, launched a fierce lobbying campaign in the Capitol. The bondholders have their own debt repayment plan and want to take over the company for themselves.