PG&E prepares bankruptcy filing

Credit: Reuters Studio
Published on January 14, 2019 - Duration: 01:57s

PG&E prepares bankruptcy filing

PG&E said it's preparing to file for Chapter 11 bankruptcy for all of its businesses as it faces potentially crushing liabilities linked to catastrophic wildfires in 2017 and 2018.

Fred Katayama reports.


PG&E prepares bankruptcy filing

PG&E said it's preparing to file for Chapter 11 bankruptcy for all of its businesses.

Morningstar's director of utilities research, Travis Miller: (SOUNDBITE) MORNINGSTAR, DIRECTOR OF UTILITIES RESEARCH, TRAVIS MILLER, SAYING: "It's not surprising, given that bankruptcy was one option on the table.

That said, this is an unusual circumstance ,and so on that we can't find much precedent.

The idea that a company, any company, the idea that a company that still has significant liquidity, and still have significant interest coverage, would decide to file bankruptcy is something that we haven't seen in the utilities industry or in recent memory." The biggest U.S. power utility faces as much as $30 billion in liabilities linked to catastrophic wildfires in 2017 and 2018.

PG&E also said its chief executive is leaving.

Its shares lost nearly half their value on Monday.

Reuters correspondent Liana Baker is covering the story: (SOUNDBITE) REUTERS CORRESPONDENT LIANA BAKER, SAYING: "This a really hard time for PG&E.

And we don't know what the future holds for them.

Sources tell me, they could be in bankruptcy for over two years, and they're not allowed right now to raise their rates to help pay for these liabilities, unless the state allows them to through legislation.

So, that's going to be very hard to happen, and the company is facing climate change in California.

It's just very dry, and they have power lines everywhere in Northern California and Central California.

And this is an issue that's just not going to go away." PG&E said the bankruptcy will not impact electric or natural gas services for its 16 million customers.

But, analysts said, it could hit PG&E's suppliers, such as Kinder Morgan, the second largest North American pipeline operator.

You are here

Recent related news from verified sources

India's government has asked state-run banks to rescue privately held Jet Airways without pushing it into bankruptcy, as Prime Minister Narendra Modi seeks to...
4 days ago • Reuters India

State Bank of India's head told reporters on Wednesday that putting Jet Airways into bankruptcy is the "last option" for lenders and that they are making every...
3 days ago • Reuters India

State Bank of India's (SBI) chairman said on Wednesday that putting Jet Airways into bankruptcy is the "last option" and that its lenders are making every effort...
3 days ago • Reuters India

Bankruptcy is the "last option" for Jet Airways, State Bank of India's (SBI) chairman said on Wednesday, adding that it might still be possible to draft in a new...
3 days ago • Reuters India

On February 20, 2019, the United States Supreme Court heard oral arguments in the case Mission Products, Inc. v. Tempnology, LLC.
1 week ago • Mondaq

PG&E Corp is close to naming a new chief executive officer and revamping its board backed by some of its largest investors, the Wall Street Journal said on...
6 days ago • Reuters India

Recent related videos from verified sources

Delaney: Let Americans With Student Debt Declare Bankruptcy 02:45
Credit: Newsy Studio - Published 1 day ago 

Scheherazade Jewelers' Sudden Closure Leaves Customers Stunned 02:34
Credit: CBS 4 WCCO Minnesota - Published 2 days ago 

VIDEO: Community leaders react to Reading Eagle bankruptcy
Credit: WFMZ Allentown, PA - Published 2 days ago 

Reading Eagle files for bankruptcy protection, seeks buyer
Credit: WFMZ Allentown, PA - Published 2 days ago 

You might like