Why Shares of PG&E Are Climbing Today
Shares of PG&E (NYSE: PCG) lost nearly half of their value in two trading days as a new wave of wildfires and power shutdowns cast fresh doubts on the bankrupt utility's restructuring plans. On Tuesday bargain hunters stepped in, sending PG&E shares up 16% in an apparent wager that the recent sell-off is overdone.
PG&E filed for bankruptcy protection in January, seeking to reorganize to get out from under about $30 billion in wildfire liabilities stemming from the 2018 Camp Fire in northern California. The company's plan from the beginning has been to allow for some recovery for equity holders, meaning that unlike in most bankruptcies the stock has retained some of its value throughout the process.
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Source Fool.com
