Maui Wildfires Put Hawaiian Electric On Hedge Fund Radars
California utility PG&E went bankrupt after raking up billions in wildfires liabilities
The aftermath of a wildfire in Lahaina, western Maui on Aug. 12.
Photographer: YUKI IWAMURA/AFPWelcome to The Brink. It’s Rachel Butt and Reshmi Basu in New York, where we reported on distressed funds zeroing in the Hawaiian utility that could be held responsible for the Maui wildfires. We also have the latest on China’s property crisis and on Christmas Tree Shops’ workers fighting to get a final salary. Follow this link to subscribe. Send us feedback and tips at rbutt4@bloomberg.net or Tweet/DM to @rachel_butt.
Distressed debt investors are circling Hawaiian Electric and have zeroed in on a set of rarely traded bonds following deadly wildfires in Maui.
While the company’s municipal bonds have sunk to distressed prices, Jefferies sent out quotes this week on the company’s private placement notes at levels between 40 cents and 60 cents on the dollar. These notes are primarily held by insurance companies and are rarely traded. Meanwhile, traders at Seaport are also gauging interest from some investors in hopes of making a market in the bonds.