PG&E Shares Recovering After Investors Offer $4 Billion Plan to Avoid Bankruptcy
PG&E shares were up 15% on Monday morning following a Bloomberg News report that an unnamed investor group planned to offer the natural gas company $4 billion to avoid bankruptcy, according to CNBC.
The utility told Fortune on Monday that it doesn’t “comment on market rumors.”
PG&E said earlier this month that it was preparing to file for Chapter 11 bankruptcy in California, pointing to the cost of wildfires in 2017 and 2018, which left it with potential liabilities amounting to $30 billion or more.
The bankruptcy filing would hit stockholders, bondholders, and PG&E retirees hard, Bloomberg reported Monday. It would also impact the 35 families suing the company for allegedly causing the 2018 Camp Fire that killed at least 86 people, who would receive later and smaller settlements. The lawsuit is also PG&E’s main reason for filing for bankruptcy.
Cal Fire investigators concluded in June 2018 that the company’s equipment was legally responsible for at least 17 major wildfires the prior year. PG&E remains under investigation for its alleged involvement in the 2018 Camp Fire in Northern California.
The company’s stock lost 70% of its value over the last year, CNBC reported. However, following news of an alternative plan to avoid bankruptcy, PG&E’s shares were up 6.6% to $12.53 in midday trading on Monday.