Why Shares of PG&E Climbed Today
Shares of PG&E (NYSE: PCG), which on Monday plummeted on word that Gov. Gavin Newsom of California was not on board with the bankrupt company's restructuring plan, rallied 12.8% on Tuesday. The utility believes it has a work-around that will allow it to proceed without the governor's backing, but PG&E's recovery is still far from certain.
It has been a turbulent few weeks for shares of PG&E, which filed for bankruptcy back in January to help manage an estimated $30 billion in liabilities stemming from 2017 and 2018 wildfires. From the start, the company has stated its preference to reorganize in such a way that its equity would retain some value. And the stock has rallied in December after PG&E reached a deal on compensation for victims that makes it more likely its reorganization plan will ultimately be approved.
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Source Fool.com
