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PG&E Stock Down 50 Percent as it Prepares Chapter 11 Bankruptcy Filing
| 01/14/2019
PG&E Corp revealed today that it is preparing to file for Chapter 11 bankruptcy for all of its businesses. This latest development comes as the company noted that it is currently facing heavy liabilities connected to catastrophic wildfires experienced over the past two years.
PCG slumps by 50 percent
This latest development saw the stocks of the company drop by 50 percent. It was trading at $17.59 but has slipped to $8.77. PG&E provides natural gas and electricity to most of the northern two-thirds of California, from Bakersfield almost to the Oregon border, which represents 5.2 million households. It has suffered heavy losses in the wildfires that occurred in 2017 and 2018.
The company stated that it concluded plans to file for bankruptcy protection around Jan. 29. It has already given its employees a 15-day notice to comply with the law of the state of California.
The company yesterday stated that its CEO was stepping down and will be replaced by General Counsel John Simon on an interim basis. The company applying for bankruptcy will not affect the electric or natural gas services offered to its customers, it added.
The November Campfire that swept through the California mountain community of Paradise and killed at least 86 people has affected the company’s operation, and it has incurred heavy liabilities in the process.
They expect the Chapter 11 process to “support the orderly, fair and expeditious resolution of its potential liabilities resulting from the 2017 and 2018 Northern California wildfires.”