Two weeks after PG&E filed for Chapter 11 we started receiving offers from financial firms to purchase our claims against PG&E. To date we’ve had 9 offers from 6 firms. All the offers discount the claim and offer quick cash. The cash offered represents the low end of the financial firms’ estimates of recover.
For unsecured claims the best offer currently is for 71% payout. And for 503(b)(9) administrative claims the best offer is 79%. And the stock, PCG, is trading at about 40% of it’s 12 month high. Taken together, the market is not expecting PG&E shareholders or bondholders to get wiped out.