- REAL TIME CURATION
- of financial feeds, Wall Street research, communities, and social media -
- by traders for traders;
- MARKET COMMENTARY:
- Real time alerts on important factors which will affect or are affecting the market including technical factors and floor imbalances;
- ACTIONABLE CONTEXT:
- If applicable, within seconds and minutes, utilizing our real time database of accumulated Wall Street research;
PG&E Files for Bankruptcy with over $50 Billion in Debt
| 01/29/2019
Utility company PG&E Corp. and its Pacific Gas & Electric Co. utility have filed for bankruptcy despite the company having over $50 billion in debt.
PG&E to keep operating as competitors gain ground
PG&E has filed for bankruptcy following a series of a devastating wildfire that took the life of over 100 people. The wildfires affected thousands of acres in California over the two years and have seen one of the country’s largest utility companies brought down to its knees.
The company filing for bankruptcy Chapter 11 filing will enable it to keep operating as it looks for ways to pay off its creditors. The company filing for bankruptcy will also allow its competitors such as Edison, American Electric Power, FirstEnergy, and others to gain solid grounds.
The PG&E stock was up by 3 percent at the pre-market trading earlier today despite the news of the company’s bankruptcy. The wildfire that took place in November last year saw the company lose over three-quarter of its market value. The company’s CEO left his role, and its bonds dipped to junk, with the fire costing them roughly $30 billion.
PG&E’s interim chief executive officer, John R. Simon addressing their customers, stated that the decision didn’t come easily. He added that they understood that millions of customers rely on their services and have questions for them.
He assured them that power and gas will stay on as they will continue to provide sustainable electric and natural gas service. He pointed out that nothing will change with their service delivery despite the ongoing issues.