PG&E Strikes Deal With Bondholders as Governor Blasts Bankruptcy Strategy

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PG&E Strikes Deal With Bondholders as Governor Blasts Bankruptcy Strategy
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PG&E’s deal with bondholders eases tensions with one key creditor group as the California governor again raises the threat of a state takeover of the utility

PG&E Corp. said Wednesday it has reached a new deal with bondholders that threatened opposition to its strategy for getting out of bankruptcy, but friction continues with California Gov. Gavin Newsom, who has threatened a state takeover of the troubled utility.

Elliott Management Corp., Pacific Investment Management Co. and other bondholders have been pushing a rival chapter 11 plan, and PG&E has been trying to win them over with an opportunity to help finance a revised bankruptcy exit plan. On Wednesday, the company...

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