Why Shares of PG&E Soared Higher Today
Shares of PG&E (NYSE: PCG) closed up more than 13% on Monday, after the bankrupt utility updated its reorganization plan to try to address the concerns raised by California Gov. Gavin Newsom. The governor's office is one of the last remaining major parties PG&E has yet to win over, and the move is a major step forward in the company's attempt to emerge from bankruptcy with its equity retaining some of its value.
PG&E filed for bankruptcy protection in early 2019 to deal with an estimated $30 billion in liabilities stemming from the 2018 Camp Fire in Northern California. In most cases equity holders are wiped out when a company declares bankruptcy, but PG&E from the beginning built its reorganization plan based on having common shares retain some value upon emergence.
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Source Fool.com
