Why Shares of PG&E Are Up Today
Shares of PG&E (NYSE: PCG) were up 10% on Tuesday afternoon, continuing the stock's surge in the days since the bankrupt utility announced a settlement with victims of California's wildfires. Shareholders are growing more confident that they will receive some recovery as part of the company's reorganization. If so, how much higher could PG&E shares climb?
PG&E entered bankruptcy nearly a year ago to manage an estimated $30 billion in liabilities stemming from 2017 and 2018 wildfires. Equity holders typically are wiped out in a reorganization, and shares typically drop below $1 apiece, but PG&E shares have been an exception to the rule because the company has said it intends to preserve some value for shareholders in its plan.
Image source: Getty Images.
Source Fool.com
