Why Shares of PG&E Are Soaring Higher Today
Shares of PG&E (NYSE: PCG) traded up more than 10% on Thursday following the bankrupt utility's announcement that it has settled a dispute with a group of powerful creditors. The settlement clears a key hurdle in the company's effort to reorganize and should help ensure that equity holders get a payout as part of that reorganization.
PG&E filed for bankruptcy in January 2019 to deal with an estimated $30 billion in liabilities stemming from the 2018 Camp Fire in Northern California and other wildfires. The company's initial plan was to reorganize in such a way that its common shares would retain some value upon emergence, but that plan has been challenged at numerous points throughout the last 12 months.
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Source Fool.com
