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.
The payment will be made half in cash and the rest in stock in the newly reorganized utility, the report said.
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 said it will continue to work with individual claimants to "fairly and reasonably resolve their claims."
(Reporting by Arunima Kumar in Bengaluru; Editing by Arun Koyyur)