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PG and E to file for bankruptcy due to wildfire lawsuits; shares tank

PG&E to file for bankruptcy due to wildfire lawsuits; shares tank

Utility cites ‘challenges’ from California wildfires, East Bay Times,   By LEVI SUMAGAYSAY | lsumagaysay@bayareanewsgroup.com and GEORGE AVALOS | gavalos@bayareanewsgroup.com | Bay Area News Group January 14, 2019  Citing “extraordinary challenges” from the devastating 2017 and 2018 California wildfires, PG&E said Monday that it will file for Chapter 11 bankruptcy protection.

In a filing with the Securities and Exchange Commission, the utility that serves 16 million Californians gave the 15-day notice required by law for filing for bankruptcy, one day after it announced the departure of Chief Executive Geisha Williams. The company’s stock dropped by more than half Monday in response to the early-morning announcement……..

One estimate, from Moody’s Investor Services, puts PG&E’s wildfire liabilities at $15 billion but PG&E said it may face liabilities of $30 billion or more. In its filing Monday, PG&E said it is aware of about 50 complaints from at least 2,000 plaintiffs related to November’s Camp Fire and said it expects more. It also said it knows of about 700 complaints on behalf of at least 3,600 plaintiffs from the 2017 California wildfires. PG&E further stated that if it is found liable for the 2017 and 2018 fires, “punitive damages, fines and penalties could be significant.” ………

San Francisco-based PG&E’s shares plunged 52.4 percent to close at $8.38 on Monday. Since October 2017, when it first became clear that PG&E might be liable for some wildfires, PG&E’s shares have nose-dived by 88 percent……… https://www.eastbaytimes.com/2019/01/14/pge-to-file-for-bankruptcy-shares-tank/

January 15, 2019 - Posted by Christina Macpherson | business and costs, USA