A PG&E worker attempts to clear a fallen utility pole from Pentz Road in Paradise, Calif., after it was felled by the Camp Fire, Thursday, November 8, 2018.

PG&E shares rose sharply Monday after Bloomberg News reported that an investor group has offered the company a $4 billion alternative plan that would help the embattled utility avoid bankruptcy.

Bloomberg also reported that activist hedge fund Elliott Management is part of the group and the plan includes convertible debt, according to StreetAccount. The company said earlier this month that it plans to file for Chapter 11 bankruptcy protection in the aftermath of the 2017 and 2018 fires.

PG&E declined to comment. Hedge fund The Baupost Group did not respond to CNBC's request for comment, while BlueMountain declined to comment. Both hedge funds had a stake in PG&E at the end of the third quarter, the latest available, according to government documents. Elliott declined to comment.