PG&E Victims Need Stock to Soar to Get $13.5 Billion Settlement

One of the biggest milestones in PG&E Corp.’s bankruptcy was brokering a $13.5 billion settlement to compensate victims of wildfires started by its equipment.

Yet as the California power giant exited Chapter 11 on Wednesday, that settlement was more than $2 billion short.

That’s because the deal calls for half the compensation, or $6.75 billion, to be paid in stock. But the shares that PG&E gave to a trust for the victims are worth just $4.5 billion based on Thursday’s closing price of $9.45. To get the full value, victims need the stock to rise nearly 50%, to about ...