Elliott Hits PG&E With New $250 Million Claim Tied to Bankruptcy

Elliott Management Corp. is claiming PG&E Corp. cost the activist investor $250 million by breaking a promise to help the hedge fund get rights to buy equity in the utility giant during its massive bankruptcy case.

PG&E was supposed to help Elliott gain access to as much as $2 billion in equity commitments, as part of a settlement struck in January to resolve competing and sometimes contentious restructuring plans, according to a court filing by Elliott.

Elliott said PG&E’s failure to follow through resulted in damages of up to 19.8 million shares valued at about $250 million. That’s based on ...