Cathy Yanni, the Trustee of the Fire Victim Trust (FVT), has announced an increase in the pro rata payment from 60% to 66%, effective from April 25, 2024.
This decision comes after the Trust successfully sold its remaining 477 million shares of Pacific Gas & Electric (PG&E) stock, which were awarded during the bankruptcy proceedings.
This move is set to enhance the financial assistance provided to the survivors of various catastrophic fires in California.
“With $1.2 billion in additional liquidity from our final stock sales and 97% of claims now accepted and final, we are confident we can safely increase the pro rata payment percentage for all fire survivors by six percent,” Cathy Yanni stated.
Established in July 2020, the FVT was designed to facilitate and expedite the compensation of claims arising from the 2015 Butte Fire, 2017 North Bay Fires, and 2018 Camp Fire.
It was funded through both cash and stock shares as part of PG&E’s Chapter 11 Plan of Reorganization.
Following its creation, the Trust was transferred 476,995,175 shares of PG&E common stock, which were then sold in a series of transactions to fund its operations and payouts to claimants.
The Trust detailed its transparent and strategic approach to selling the awarded PG&E stock, adhering to strict guidelines outlined in filings with the U.S. Bankruptcy Court and the U.S. Securities and Exchange Commission.
This process allowed for the sale of the last 67.7 million shares on December 13, 2023, marking the final step in converting the stock into liquid assets for claimant compensation.
As of February 29, 2024, the Fire Victim Trust has issued determination notices to all claimants, disbursing a total of $11.21 billion in payments.
These damages include the loss or damage to real estate and personal property, additional living expenses, lost wages, business losses, personal injury or death, related medical expenses, and emotional distress.
The Fire Victim Trust is a mechanism for addressing the aftermath of the devastating fires in California, designed to offer a streamlined and fair process for victims to receive the compensation.
