January 19, 2019

PG&E shares plunge on bankruptcy worries

08 January 2019, 07:48 | Austin Hogan

Camp Fire: PG&E gets sued by insurance companies

A PG&E truck carrying an American Flag drives past PG&E repair trucks in Paradise

State Senator Jerry Hill, an outspoken PG&E critic, said the utility previously raised the possibility of a bankruptcy filing as leverage when seeking state assistance in paying its wildfire liabilities.

S&P also kept PG&E's ratings on credit watch negative and said it could further lower PG&E's rating over the next few months if explicit steps are not taken by authorities to improve the regulatory compact.

Earlier on Monday, PG&E shares dived more than 22 percent and its largest bond, a $3 billion note due in March 2034 with a coupon of 6.05 percent, fell to a record-low bid price of 91.5 cents on the dollar, while its yield rose to almost 7 percent.

"The market is overreacting to bankruptcy concerns given the public statements we've heard from regulators and politicians", Travis Miller, a Chicago-based analyst at Morningstar Inc., said in an interview Monday.

The company is considering the move as a contingency, in part because it could soon take a significant financial charge for the fourth quarter of 2018 related to liabilities from the blazes, the sources said.

The agency also said it expects PG&E's capital access may be limited to secured debt issuance, restricting its financing options, because of the increased credit risks, and media speculation on a potential bankruptcy.

Kevin Hart Apologizes Again For His Controversial Tweets
The " Jumanji: Welcome to the Jungle " star initially said he wouldn't apologize because he had addressed the issue several times. According to him, the reason why he understands better now is that he is 'around people of the LGBTQ community'.

Alien: Blackout is a mobile game, unfortunately
Isolation , you'll need to "outsmart the flawless hunter by making perilous choices", shepherding the surviving crew to safety. The uncertainty and unpredictability of both the alien and her crew can impose total defeat for Amanda and the entire station.

7 key stats from Clemson's CFP title win over Alabama
Freshman Trevor Lawrence threw for 347 yards and three touchdowns to lead No. 2 Clemson to victory over No. 1 Alabama . This team won 13 games by 20 points or more. led by an unbelievable group of seniors.

As of Friday, PG&E was shying away from negotiating so-called debtor-in-possession financing that companies typically line up before a bankruptcy filing to help keep operating while under court protection, one source familiar with the matter said.

The company said on Friday that it was reviewing its "structural options" and assessing its operations, finances, management, structure and governance.

Over the last two years, the massive number of severe wildfires in California have placed insurance companies in the state under serious financial pressure.

However, the company said its board of directors is looking for new members and engaging outside experts for advice on wildfire safety. PG&E reported an outage around the time and place that the fire ignited.

Pacific Gas & Electric Corp. could face billions of dollars in potential liability involving massive wildfires in California - some of which have already been linked to equipment operated by the company.

PG&E shares have plunged almost 50% since November 8, when the deadliest and most destructive wildfire in California history broke out. Furthermore, The Public Utilities Commission, Cal Fire, and federal prosecutors are all investigating the company as well.

Other News

Trending Now

Could Greg Schiano Replace Brian Flores As Patriots’ Defensive Coordinator?
The significant shake-up to the coaching staff comes at the conclusion of Ryan Day's first week as the program's new head coach. According to multiple reports including Rivals' Buckeye Grove , Schiano will not be back for the 2019 season with the Buckeyes.

Firm unveils upgraded Micro LED displays that can fit any room
Why it matters: Samsung's modular Micro LED display technology is a 2019 CES Best of Innovation Award victor , and rightfully so. With this, the user can take advantage to expand any size they desire, even at an irregular 9x3, 1x7 or 5x1 screen sizes.

Kevin Spacey in court to face charges of groping teenage bus boy
The two-time Oscar victor has said he will plead not guilty to felony indecent assault and battery. Spacey and his lawyers declined to comment as they left the courthouse amid a crush of reporters.

President Trump to address the nation Tuesday night
The White House did not immediately reply to a request for comment from Newsweek on Monday afternoon. Such a move would seem certain to draw legal challenges.

Pope Francis urges end to migrant boat deadlock
The United Nations refugee agency estimates that 2,262 migrants died while crossing the Mediterranean in 2018. Malta is also blocking the ships from docking but has allowed them to enter its waters for fresh supplies.

Packers reportedly offer head coaching job to Titans' Matt LaFleur
The team is reportedly working on finalizing a deal that is expected to help keep Mike Pettine and the defensive staff in tact. The Associated Press is reports that LaFleur has indeed accepted the offer from Green Bay to become head coach.

Indian court declares tycoon living in Britain an economic offender
The new law to catch people who flee overseas after committing financial crimes was signed by the President in August past year . The Enforcement Directorate (ED) had previous year moved the Prevention of Money Laundering Act Court for this goal .

Apple iPhone XI might have the ugliest triple camera solution so far
However, we're still at least nine months away from Apple's annual iPhone reveal, so take these images with a pinch of salt. What's unclear is exactly what extra features we'll get from having an extra camera grafted onto the back of the phone.

HTC Unveils Vive Pro Eye with integrated eye-tracking at CES 2019
It announced a new VivePort Infinity plan, which it says is the world's first "infinite VR subscription". It lacks all the indentations of previous headsets used by the Lighthouse sensors to track the headset.

US targets suspected USS Cole bombing planner in Yemen - statement
The New York Times reported that he helped Yemeni authorities track down five other wanted al-Qaeda operatives. Al-Badawi's death in Tuesday's airstrike was also confirmed by Voice of America, citing a defense official.