Why Shares of PG&E Spiked Today
Shares of bankrupt California utility PG&E (NYSE: PCG) spiked nearly 22% on Monday before giving up some of that gain later in the day. The stock has been a battleground for bulls and bears for months now, moving on rumors about the company's restructuring plans and headlines about wildfire damage.
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, and the stock in the months since has traded up and down on market sentiment over how much recovery, if any, that shareholders will receive as part of the reorganization. The utility's initial plan sought to give equity holders recovery, but events on the ground in California since have led to doubts about the eventual outcome.
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Source Fool.com
