PG&E Fire Victims Trust liquidates $500M in stock
PG&E crews work to restore utility services in Paradise, California on February 01, 2019. Photo: credit Josh Edelson / AFP via Getty Images
Pacific Gas & Electric's Fire Victims Trust liquidated nearly $517 million worth of PG&E stock Thursday, Axios has learned.
Why it matters: The embattled California utility provider's stock is up nearly 25% YTD, giving the Trust access to additional funds via stock grants to pay out fire victims' claims.
Driving the news: The Trust, which is overseen by Cathy Yanni and has paid out roughly $5 billion worth of claims to date, sold off roughly 10% of its entire PG&E stock holding in the transaction.
- It sold 35 million shares at $14.77 Thursday. The stock price rose to $15.25 by close of business Friday.
- The Trust retains more than 307 million shares in PG&E.
- The Trust previously reported the sale via press release on October 5 but completed the transaction on Thursday, per SEC documentation filed Friday.
Flashback: The Fire Victims Trust was established during PG&E's Chapter 11 restructuring in 2020. It was established to ensure the company would continue paying wildfire victims with claims against it separate from its bankruptcy. The Trust was funded with a combination of cash payments and stock grants.
- It pays claims from victims of the 2015 Butte Fire, the 2017 North Bay Fires and the 2018 Camp Fire to the tune of $13.5 billion. It has paid out roughly a third of the total ordered.
- Victims have taken the Trust to court to force more transparency on how it is managing spending amid delays in claims' payments to victims.