Elliott Loses $250 Million Claim Bid in PG&E Bankruptcy Case

PG&E Corp. escaped an effort by Elliott Management Corp. to collect $250 million of administrative expenses over a broken deal to help the activist investor get equity rights as part of the California power company’s bankruptcy reorganization.

Elliott, which was a noteholder, argued it’s entitled to the claim because the debtor was contractually bound to help the investment firm gain equity purchasing rights in the reorganized company.

But PG&E is released from claims rising from such contracts because the litigation releases in the utility’s Chapter 11 restructuring plan went into effect, Judge Dennis Montali of the U.S. Bankruptcy Court for ...