(Reuters) – Electricity producer PG&E Corp (N:) said on Friday it is assessing a proposal from hedge funds Knighthead Capital Management and Abrams Funds Administration to present fairness money commitments supporting a program to reorganize the business.
“The Organization has acquired the funding proposal from Abrams and Knighthead and is analyzing it, which include the backstop dedication letters and similar products, in session with the Firm’s advisors. The Enterprise will answer to the proposal in because of study course,” PG&E reported in a statement.
Shareholders Knighthead Money and Abrams in a letter to PG&E on Thursday proposed raising $15 billion in equity to fund a planned reorganization of the electrical power producer, which is dealing with massive liabilities from California wildfires.
The proposed fundraising, a rights supplying of new shares, is the hottest energy to rescue PG&E, which sought Chapter 11 individual bankruptcy defense before this calendar year just after intense wildfires in 2017 and 2018 resulted in a lot more than $30 billion in liabilities.
Knighthead and Abrams pledged to acquire a portion of the offered equity if shares are still left unsold via a so-referred to as backstop commitment.
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