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A PG&E worker attempts to clear a fallen utility pole from Pentz Road in Paradise, Calif., after it was felled by the Camp Fire, Thursday, November 8, 2018.
PG&E shares rose sharply Monday after Bloomberg News reported that an investor group has offered the company a $4 billion alternative plan that would help the embattled utility avoid bankruptcy.
Bloomberg also reported that activist hedge fund Elliott Management is part of the group and the plan includes convertible debt, according to Streetaccount.
The company said earlier this month that it plans to file for Chapter 11 bankruptcy protection in the aftermath of major fires in 2017 and 2018. PG&E did not immediately respond to a request for comment on the report. Hedge fund The Baupost Group did not immediately respond to CNBC’s request for comment. BlueMountain did not yet have a comment ready and Elliott declined to comment.
Shares were up 6.6 percent at $12.53 in midday trading.
Investigators have already determined PG&E’s equipment was liable in at least 17 major wildfires in 2017 and it remains unclear whether PG&E will be found liable for November’s Camp Fire. That fire killed at least 86 people and destroyed about 14,000 homes, making it the state’s deadliest fire.
— CNBC’s
Leslie Picker
contributed reporting.
