Elliott Management claims PG&E (PCG +0.8%) cost the hedge fund $250M by breaking a promise to help it obtain rights to buy equity in the utility during its bankruptcy case.

According to a court filing, PG&E was supposed to help Elliott gain access to as much as $2B in equity commitments as part of a January settlement to resolve competing restructuring plans, and PG&E's failure to follow through resulted in damages of as much as 19.8M shares valued at ~$250M based on prices as of June 8.

Because PG&E allegedly breached its obligation "and concealed that breach until after the evidence had closed with respect to the confirmation hearing, Elliott is now entitled to seek payment of this administrative expense claim," the hedge fund says.

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