Why Shares of PG&E Are Climbing Today
In recent months, shares of PG&E (NYSE: PCG) have been caught in a tug-of-war between those who believe equity holders will receive some recovery as part of the bankrupt utility's reorganization plan and those who expect the shares to be wiped out as part of the process. The bulls were in the ascendancy on Friday, sending shares up 11% at midday on news that a prominent hedge fund manager had increased his stake in the company.
PG&E filed for bankruptcy in January to deal with an estimated $30 billion in liabilities stemming from the 2018 Camp fire in Northern California. Although equity holders are often wiped out in a bankruptcy reorganization, the utility's original plan called for the shares to retain some value upon its emergence.
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Source Fool.com
