News of a PG&E bankruptcy has PCG stock continuing to fall even further on Monday.
PG&E (NYSE:PCG) says that it is planning to file for bankruptcy on or around Jan. 29, 2019. The company is providing this early warning of the PG&E bankruptcy to comply with California laws that require a 15-day notice of such actions.
The company says that the PG&E bankruptcy will allow it to restructure its business while also continuing to serve customers. It will also give the company the ability to best determine how to continue operations while handling possible liabilities in the California wildfires from 2017 and 2018.
According to the company, it will be able to continue operations normally during a PG&E bankruptcy. This will be due to Debtor-in-Possession financing that the company intends to obtain before the bankruptcy takes place.
PG&E says that it is already in talks with potential lenders, as well ass several major banks, about obtaining financing to push it through the Chapter 11 bankruptcy. The company says that it is expecting to have $5.5 billion in financing when it files for bankruptcy.
The stock market hasn’t been kind to PCG stock in the months leading up to the PG&E bankruptcy. Initial concerns about the company’s liability in the California wildfires hit the stock hard in November. It also took a beating earlier this month when bankruptcy rumors started to spread.
PCG stock was down 46% as of noon Monday and is down 63% since news of its potential connection to the wildfires broke.
As of this writing, William White did not hold a position in any of the aforementioned securities.