PG&E’s bankruptcy is making some people very rich.
Since the utility filed for Chapter 11 protection in January, lawyers and consultants have made a staggering $217 million. Big banks have netted $114 million in financing fees — and that number could top $1 billion by the time the company exits bankruptcy next year.
Others are reaping the bankruptcy windfall, too.
A handful of hedge funds stand to make billions because they own nearly one-fifth of PG&E’s stock and bought up more than half of the wildfire insurance claims against the company — meaning they are basically on both sides of the negotiating table in court.