The hedge fund shareholders and creditors of California utility and wildfire-starter PG&E are still fighting over how much they will lose or gain through the company’s bankruptcy exit. It’s not going terribly well, with the judge overseeing PG&E’s Chapter 11 filing giving it control over the planning process for now, and in any event it will have to go badly for at least some of them, since some—creditor Paul Singer, for instance—arguing that others—shareholders like Abrams Capital Management and Knighthead Capital Management, who are pushing their own plan—should be wiped out. The fighting is likely to go one for some time longer, since no one knows how much PG&E actually owes the people whose houses and whatnot it burned to the ground, and likely won’t for some time.

All of that? Yea, it’s not Seth Klarman’s problem. He decided to buy some dirt-ass-cheap insurance claims instead of stocks or bonds, and now whatever might happen amidst the messiness of Chapter 11 and the rest of it is of no moment to him.

Public records reviewed by The Wall Street Journal indicate Baupost stands to make hundreds of millions of dollars from its investment in insurance claims tied to the wildfires that pushed PG&E into chapter 11. Under a proposed settlement unveiled Friday, those insurance claims will be paid back at roughly 59 cents on the dollar, roughly twice what Baupost paid for some of them, records show…. A PG&E spokesperson said the new deal was an “agreement in principle” and the company would announce additional details when a full written settlement is reached.

Klarman’s Baupost Poised to Cash In On PG&E Insurance Bet [WSJ]