PG&E notes trade higher amid payout dispute; Endo active as settlement announced

By James McCandless

San Antonio, Jan. 10 – At the tail end of the week, the distressed debt space was driven by newsmakers in utilities, pharmaceuticals and energy.

PG&E Corp.’s notes tracked higher as government agencies and wildfire victims enter a dispute over allocation of settlement money.

The 6.05% notes due 2034 gained 2½ points to close at 107½ bid.

News broke on Friday that wildfire victims that are being paid $13.5 billion from the San Francisco-based bankrupt electric utility are involved in a dispute with state and federal emergency management agencies.

FEMA and its California counterpart are requesting more than $6 billion from the settlement for providing emergency services during recent wildfires.

Representatives for the victim group said that the request is detrimental to on-the-ground recovery, a sentiment that is backed by the company.

Meanwhile, in pharma, Endo International plc’s issues varied as news broke of a settlement reached with Oklahoma over opioid-related claims.

The 6% senior notes due 2025 rose ¾ point to close at 70½ bid. The 6% senior notes due 2023 held level at 76¼ bid.

On Friday afternoon, the Dublin-based drugmaker announced that it had reached an $8.75 million settlement with the state of Oklahoma over opioid-related claims.

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