I would expect stock to tank but PCG stock (PG&E corp, provider of California energy utility which has been target of lawsuit over recent massive Tubbs fire) has responded positively by rising +10% over news of bankruptcy. Which is sort of strange. is it because of imminent bailout?
Then I got this petition from "food & water" ngo e-mail: Pacific Gas & Electric (PG&E), California’s largest utility, just declared bankruptcy.1 Now PG&Ewants Californians like YOU to bail it out. This convicted criminal corporation has a history of dangerously inadequate maintenance, and is also likely responsible for the climate change supercharged Camp Fire last summer — the most destructive fire in California history that killed over 90 people and destroyed over 14,000 homes.2 Instead of more bailouts for PG&E, we need the state to take it over, run it as a public utility, and use that public ownership to transform it into a 100% renewable energy powered utility. Tell Governor Newsom, the California Public Utilities Commission, and the California Legislature no more bailouts for PG&E and to support a public takeover now! Making PG&E public will remove the profit motive from its directors and allow the state to run the utility in the interest of the people. It will dramatically reduce the incentive to cut corners on safety, which results in dangerous fires. And it will give Governor Newsom and other decision makers the ability to move the utility quickly to 100% renewable energy, to pay the victims, and avert further climate change supercharged fires. Taxpayers and ratepayers should not have to further subsidize PG&E’s negligence or multi-million dollar compensation packages for their executives. Tell your decision makers — not one more penny for PG&E! Food & Water Watch has a history of fighting for public control of utilities in our various campaigns against water privatization. The vast majority of water utilities across the country are public, and our research has found that publicly owned utilities charge ratepayers less, provide higher quality service, and are more accountable to their customers. Rather giving out more bailouts to PG&E, we urge Governor Newsom, the Public Utilities Commission, and the state legislature to take it over and run it as a public utility. Demand a public takeover now!
PCG has been cleared of the Tubbs Fire. https://www.sfgate.com/bayarea/article/Update-Pg-E-Responds-To-Cal-Fire-s-Tubbs-Fire-13559703.php
but the article content also says: " "Regardless of today's announcement, PG&E faces extensive litigation, significant potential liabilities and a deteriorating financial situation which was further impaired by the recent credit agency downgrades to below investment grade. " They also had killed other people through san bruno blast: https://www.mercurynews.com/2016/08...arges-connected-to-fatal-san-bruno-explosion/
https://calfire.ca.gov/communications/downloads/newsreleases/2018/2017_WildfireSiege_Cause.pdf https://www.reuters.com/article/us-...pge-corp-options-reaps-millions-idUSKCN1PI34V From what I understand, they were liable for 15 out of 16 2017 October fires or something like that, a tweet by a reporter comes out at 3:14 Eastern time saying breaking news PG&E not liable for tubbs fire reported by Cal Fire, a buyer started buying everything at 3:11, by 3:12 the stock started to blast fast and by 3:20 it was full blown straight rocket upwards, stock was up 70 % within the hour...
At the point the company files for bankruptcy none of that really matters. In general bankruptcy by definition is the company shifting ownership from shareholders to debt holders, you wouldn't file for bankruptcy if you could cover your debt load. There are always exceptions where the debt holders agree to less than $1 on the dollar for their debt and don't demand full ownership of the company, I guess hope springs eternal for shareholders of companies in bankruptcy that their company will be one of those.
Some analysts saying there is still $20+ Value left in PCG after BK. I haven’t done any work on it but I saw that note yesterday or Monday
I be curious what maintenance was the issue. I’m an electrician, not a linesman but in my part of eastern Canada, our provincial utility company pretty much waits for poles to fall over before fixing whether it’s from trees falling or just old wood. I could drive down a lot of country roads and see questionable poles that should be fixed but it’s cheaper to wait until they actually fall. Substations would have regular maintenance and other crucial parts. I think it’s absurd to blame forest fires on a hydro company that’s operating in what basically seems like a giant pile of dry hay.
If we are uninsured where else can we get the money to rebuild? Not the city, nor the state since they have no money. And definitely not Trump, he hates California. Besides, we love to blame all the deep pockets: Like robing banks, that is where the money is.