PG&E Creditors May End Up Owning 95% of Utility Under Plan (2)

A group of creditors seeking control of PG&E Corp. have finally disclosed just how much of the utility they’d like to own after it emerges from bankruptcy: Almost all of it.

The ad hoc committee of senior unsecured lenders is prepared to inject up to $20 billion of cash for 85% to 95% of PG&E’s common stock, according to a court filing July 17. That would effectively wipe out most of its equity holders, including hedge funds that had wrested control of its board earlier this year.

The group -- led by Pacific Investment Management Co., Elliott Management Corp., and ...