Why Shares of PG&E Are Down Today
Shares of PG&E (NYSE: PCG) fell more than 10% on Wednesday morning on investor concern that the bankrupt power provider could be turned into a customer-owned cooperative, instead of a publicly traded utility, as part of its restructuring. The talk adds a new layer of uncertainty to PG&E, and raises fresh questions about what, if any, recovery shareholders will receive as part of the reorganization.
PG&E went bankrupt in January to deal with $30 billion in liabilities stemming from the 2018 Camp Fire in Northern California, and the company's shares in the months since have moved on market sentiment about how much recovery shareholders would receive. Shareholders are often wiped out in a bankruptcy, but the utility's initial plan sought to retain some value for common shares.
Image source: Getty Images.
Source Fool.com