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Victims of PG & E wildfire unpaid as New California fire squeezes company stock

A year after PG & E Corp. funded a trust to cover California wildfire victims with company stock, most haven’t been paid yet and utilities may have started. After admitting that there was, the value of the stock fell Worst fire of the year..

As part of last year’s bankruptcy plan, the San Francisco-based company used cash and stock to compensate about 70,000 people who lost their homes, businesses and families in a fire caused by equipment 135. Agreed to fund a $ 100 million trust. Some victims The transaction was very risky For them, it was noted that stock prices were not guaranteed to recover and could fall if PG & E fired further.

So far, these concerns are foresighted. PG & E shares are about as valuable as when the trust was funded, threatening the victim’s ability to receive full compensation. Their value fell by about 25% this year, sharply last month when it was revealed that the company’s equipment could have ignited. Continuous Dixie Fire this summerConsume approximately 490,000 acres in the hills of the Sierra Nevada Mountains, Destroyed the town of Greenville..

So far, the trust has made partial payments to less than 3,300 victims, or less than 5% of the total. Records show that at the end of July, about $ 600 million in cash was distributed to victims, nearly half of which corresponded to prepaid payments to help victims cope with serious difficulties. We are not selling shares that help us pay because we are working on complaint quotes and unexpected tax issues. Its assets are currently worth about $ 10 billion.

A former California judge who oversees the trust said taxes and other issues have been resolved and expects to begin selling shares in the company by the end of next year. Trusts face limits on the amount they can sell at one time, given their large ownership. The 478 million share trust owns more than 20% of PG & E and is the company’s largest shareholder.

Victims of PG & E wildfire unpaid as New California fire squeezes company stock

Source link Victims of PG & E wildfire unpaid as New California fire squeezes company stock

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