Why Shares of PG&E Are Surging Today
Shares of PG&E (NYSE: PCG) climbed more than 16% on Monday after the bankrupt California utility announced a $13.5 billion settlement with victims of California wildfires. The deal, while expected, is good news for shareholders because it makes it more likely the company's equity-friendly reorganization plan will survive a creditor challenge.
PG&E entered bankruptcy nearly a year ago to manage an estimated $30 billion in liabilities stemming from 2017 and 2018 wildfires. Equity holders are typically wiped out in a bankruptcy reorganization, but shares of PG&E have continued to trade because the company has said it intends to preserve some value for shareholders as part of its reorganization plan.
Image source: Getty Images.
Source Fool.com
