PG&E Shareholders Unveil $15 Billion Equity Offering Plan (1)

Two hedge funds are seeking to raise $15 billion of equity to bolster PG&E Corp.’s plans to emerge from the largest utility bankruptcy in U.S. history, according to a regulatory filing Aug. 8.

Knighthead Capital Management and Abrams Capital Management, which together own about 7.8% of the California utility, plan to raise the money through a rights offering that would be open to all existing PG&E shareholders, they said in a filing with the U.S. Securities and Exchange Commission. The plan was reported earlier by Bloomberg News.

The two firms would contribute $1.5 billion themselves, according to people familiar with ...