Hostile takeover of PG&E? Billion-dollar hedge funds duel over bankrupt utility


Sacramento Bee

Bondholders are lenders, while stockholders actually own the company. The group competing with the bondholders consists of three hedge funds that own a combined 10 percent of PG&E’s stock — Abrams Capital, Knighthead Capital and Redwood Capital. They have become influential players in the company’s operations. In April they played a big role in installing Bill Johnson, the former head of the Tennessee Valley Authority, as chief executive of PG&E. Their stock is worth just under $1 billion.