PG&E in Stock Deal With Fire Victims as Bankruptcy Nears End

PG&E Corp. reached an agreement with the committee representing fire victims in its bankruptcy regarding company stock that will fund half of a $13.5 billion trust to pay damage claims.

The deal resolves the last major dispute in the California power giant’s Chapter 11 case, largely clearing the way for a judge to approve its reorganization ahead of a June 30 deadline to qualify for a state wildfire insurance fund.

The fire-victims trust will own 22.19% of outstanding shares in the reorganized utility after it emerges from bankruptcy, according to a regulatory filing Friday. Under a so-called registration rights agreement, ...