Why Shares of PG&E Are Up Today
Shares of PG&E (NYSE: PCG) traded higher on Wednesday after a federal judge approved two settlements key to the utility's plan to emerge from bankruptcy protection next year. Shares appear likely to retain some value post-bankruptcy if the court backs PG&E's plan over one submitted by creditors, and the approvals are a key step toward that goal. The stock was up 11% at the start of trading, before settling to a 6.5% gain as of 1:48 p.m. EST today.
It's been a tumultuous few days for PG&E shareholders, with the stock rallying last week after the utility reached a deal on compensation for wildfire victims, but falling back on Monday after Gov. Gavin Newsom of California objected to elements of the plan. PG&E and Newsom both appear open to compromise, and the utility is proceeding with its reorganization plan while talks continue.
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Source Fool.com
