The deal over emergency aid brings PG&E one step closer to emerging from Chapter 11.
PG&E Corp. reached a deal with the U.S. Federal Emergency Management Agency over $3.9 billion in relief that Washington provided after the utility’s power lines sparked devastating wildfires.
The California Governor’s Office of Emergency Services has agreed to withdraw its claims. Details of the settlement, brokered by attorneys for fire victims, will be filed with the court in the coming days. PG&E shares rose as much as 9.7% in New York after the settlement was announced. Its bonds climbed, too, with 6.05% senior unsecured notes maturing in 2034 rising 0.125 cents on the dollar to 116.38 cents at 3:11 p.m., according to Trace data.
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