PG & E skyrockets after a California probe has deterred it from causing California's deadliest fire

Markets Insider

• PG & E, California's largest utilities company, has been struck off by a supervisor of the supervision of any wrongdoing related to the company. Tubbs fire in 2017.
• 75% after the news. Last week he had announced his intention to seek Chapter 11 protection in bankruptcy, since he could still be held responsible for the camp's fire of 2018, the deadliest of the day. 39, history of California.
• Watch live PG & E's trade

climbed Thursday afternoon, up nearly 75%, after a state control body l & # 39; has cleared all liability related to the fire of 2017 in Tubbs. California investigators discovered that the fire had been caused by a "private electric system," according to Bloomberg.

This fire was different from the 2018 fire in the camp, the deadliest and most destructive in the history of California.

"Investigation, Cal Fire determined that the Tubbs fire, occurred during the fire headquarters of October 2017, had been caused by a private electrical system adjacent to a residential structure", said a statement released Thursday by the California Department of Forests and Fire Protection, according to Bloomberg. .

"Cal Fire investigators have identified no violation of state law, Public Resources Code, relating to the cause of this fire."

Last week, the company had announced its intention to file a petition in bankruptcy at the end of the month to reorganize under Chapter 11, two months after the start of the deadliest fire and the most destructive in California's history.

Previously, PG & E had announced problem with its transmission lines when the fire broke out and that it could be responsible for it.

Thursday's announcement was good news for hedge funds that bought shares. Baupost, of Seth Klarman, held nearly 19 million shares and BlueMountain Capital, 4.3 million, according to their latest deposits.

"The news of Cal Fire that PG & E has not caused the devastating fire of Tubbs in 2017 is yet another. An example of why the company should not rushing to go bankrupt, which would be totally useless and damaging for all stakeholders, "said a BlueMountain spokesperson.

The fund had declared at the beginning of last week that a statement of bankruptcy of PG & E was useless.

The shares of PG & E had lost up to 90% of their value after the fire, falling to $ 5.07 unit on January 15th.