PG&E lower amid victim payout dispute; Bristow notes up as bankruptcy exit expected

By James McCandless

San Antonio, Oct. 7 – The distressed debt space started a new week with muted activity with utilities and energy names in the fray.

PG&E Corp.’s notes moved lower as a group representing wildfire victims argued in court that payouts needed were more than the company’s $8.4 billion cap.

The 6.05% notes due 2034 dropped 1¾ points to close at 109¼ bid.

On Monday, a lawyer representing wildfire victims in the San Francisco-based electric utility’s bankruptcy case said that the cost of a settlement to the victims is $13.5 billion.

The number is at odds with what is outlined in the company’s proposed restructuring plan, which caps victim payouts at $8.4 billion.

In energy, offshore transporter Bristow Group Inc.’s issues improved after announcing that it had received court approval to exit bankruptcy.

The 6¼% senior notes due 2022 picked up 1¼ points to close at 6½ bid.

The Houston-based offshore transportation name announced on Monday that its amended plan for reorganization was approved in bankruptcy court last week.

Bristow expects to exit Chapter 11 on Oct. 31.

As oil futures were under pressure, Chesapeake Energy Corp.’s paper was negative as Valaris plc’s and McDermott International, Inc.’s notes rose.

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