(Bloomberg) -- PG&E Corp. settled a dispute with bondholders over its turnaround plan, removing one of the last remaining roadblocks to the company’s emergence from the biggest utility bankruptcy in U.S. history.

Pacific Investment Management Co., the giant bond investment company, and Elliott Management Corp., the hedge fund founded by billionaire Paul Singer, are among creditors who have agreed to support PG&E’s restructuring plan.

The group, which holds the majority of the utility’s unsecured notes, is expected to drop efforts to replace the company’s plan with one of their own.

It’s a major step forward for the San Francisco-based utility, which filed for bankruptcy in January 2019 and then spent months in court battling groups including the bondholders, who control about $11 billion of unsecured notes and at least $2 billion in PG&E loans. PG&E previously settled with all of its other main creditors.

The company still must win backing from California Governor Gavin Newsom for its exit plan. It calls for PG&E to pay wildfire victims $13.5 billion in cash and stock and to fully repay noteholders and other creditors. It would also allow shareholders to retain much of their stock.

The bankruptcy case is PG&E Corp. 19-bk-30088, U.S. Bankruptcy Court, Northern District of California (San Francisco)

--With assistance from Rick Green, Scott Deveau and Lynn Doan.

To contact the reporters on this story: Steven Church in Wilmington, Delaware at schurch3@bloomberg.net;Mark Chediak in San Francisco at mchediak@bloomberg.net

To contact the editors responsible for this story: Rick Green at rgreen18@bloomberg.net, ;Lynn Doan at ldoan6@bloomberg.net, Dawn McCarty

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