PG&E nearing $13.5B deal with wildfire victims: Report

Bankrupt California power producer PG&E Corp is close to finalizing terms for a $13.5 billion payout to victims of wildfires ignited by its power lines, Bloomberg reported on Wednesday, citing people familiar with the matter.

Shares of the company rose about 13 percent to $9.62.

PG&E HAD SYSTEMIC PROBLEMS WITH POWER LINE MAINTENANCE, CALIFORNIA PROBE FINDS

The payment will be made half in cash and the rest in stock in the newly reorganized utility, the report said.

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The settlement could mark a major step towards a resolution of the company's bankruptcy proceedings and give it a big win over a rival group of noteholders that so far had the support of a committee representing the victims.

PG&E EQUIPMENT CAUSED NO DEADLY FIRES THIS YEAR, UTILITY COMPANY SAYS

PG&E said it will continue to work with individual claimants to "fairly and reasonably resolve their claims."

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(Reporting by Arunima Kumar in Bengaluru; Editing by Arun Koyyur)