Wall Street Could Make $1 Billion Off PG&E's Bankruptcy – and Ratepayers Are on the Hook
By News
Published 4 years ago on
December 17, 2019
Share
[aggregation-styles]
KQED
KQED
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.
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.
By Marisa Lagos | 16 Dec 2019
RELATED TOPICS:
At Time of Rising Antisemitism, Holocaust Survivors Take on Denial and Hate in New Digital Campaign
Inspire /
19 hours ago
Gov. Newsom Appoints Judges for Fresno, Merced Counties
Local /
1 day ago
Israel Briefs US on Evacuation Plan for Palestinians Ahead of Planned Rafah Assault
World /
1 day ago
Canadian Police Make 3 Arrests in Sikh Separatist’s Slaying That Sparked a Spat with India
World /
1 day ago
Three Arrested for Trespassing, Posting Flyers at Fresno Synagogue and Church
Crime /
1 day ago
Latest
Videos
Politics /
19 hours ago
Yellen Says Threats to Democracy Risk US Economic Growth, an Indirect Jab at Trump
World /
19 hours ago
New Sea Route for Gaza Aid on Track. Treating Starving Children Is a Priority
Inspire /
19 hours ago
At Time of Rising Antisemitism, Holocaust Survivors Take on Denial and Hate in New Digital Campaign
Local /
1 day ago
Gov. Newsom Appoints Judges for Fresno, Merced Counties
World /
1 day ago