The agreement PG&E Corp. reached to enlist bondholder support for its chapter 11 exit transforms $21.5 billion worth of unsecured debt into secured debt, cushioning Wall Street investors in the event the utility runs into trouble again. When PG&E entered bankruptcy last year, it faced an estimated $30 billion in liabilities for wildfire damages but had no secured debt. A bondholder settlement reached this week, if approved, gives hedge funds like Elliott Management Corp. liens on business assets that no lender, to...

Source: Wall Street Journal January 24, 2020 23:37 UTC