Talk of a PG&E bankruptcy has PCG stock falling hard on Monday.
A report that came out late on Friday claims that PG&E (NYSE:PCG) is considering bankruptcy protection to deal with the fallout it may face from the recent wildfires in California. This move comes as the company prepares for losses in its fourth quarter in connections to the wildfires.
Reports from several unnamed sources claim that a PG&E bankruptcy may be in the works. However, there is also the option of the company making the move in an effort to gain help from legislators.
It’s also worth noting that one inside source says that PG&E isn’t yet moving forward with debtor-in-possession financing. This is typically what companies do before they file for bankruptcy protection.
Outside of a PG&E bankruptcy, the company is also considering another option to help cover liability costs in connection to the California wildfires. This would have it selling its natural gas business. The anonymous sources also claim that this may possibly happen as part of a bankruptcy auction, reports Reuters.
This isn’t the first time that the California wildfires have caused PCG stock to plummet. The stock also saw a heavy hit back in November 2018 when it was first revealed the company may be linked to the deadly fires. The stock was down roughly 23% following that news.
PCG stock was down 22% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.