By Kuldip K. Ambastha and Anil K. Ambastha
Pacific Gas & Electric Co. (PCG), aka: PG&E Corp., announced it would file for Chapter 11 bankruptcy on January 29, 2019 due to massive claims caused by deadly wildfires. Since then, its stock has still been trading actively on the New York Stock Exchange (NYSE) as legal proceedings go on. On October 10, 2019, bondholders were given a victory in bankruptcy court proceedings – a victory which could potentially wipe out stockholders. Bondholders such as Elliott Management Corp. and Pacific Investment Management Company (PIMCO) were given the right to pitch a restructuring plan for the corporation. Such consent is usually not granted to bondholders by a bankruptcy judge. In other news during the week, PG&E Corp. rolled out blackouts in advance within California to avoid damage from any new wildfires. On October 8, 2019, the stock fell by 5.2% due to the announcement of blackouts. Thereafter on October 10, 2019, the stock fell 29.1% due to the bankruptcy court proceedings.
Keywords – Pacific Gas & Electric, PG&E Corp., PCG, Chapter 11, Bankruptcy, Elliott Management Corp., Pacific Investment Management Company, PIMCO, New York Stock Exchange, NYSE, Utilities, California, Wildfires, Blackouts, Restructuring.
Disclosure – The principals and clients of Ambastha Financial LLC have no position in PCG.
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