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PG & E stocks jumped more than 70% on Thursday after the California Department of Forests and Fire Protection reported that the Tubbs fire had been caused by a private electric system and not by utility cables.
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PG & E
stockpile (PCG) was in free fall after being accused of fires in California that could have cost him billions of dollars in damages. The company announced that it was preparing to declare bankruptcy at the end of the month, although the BlueMountain Capital hedge fund claimed bankruptcy was a bad decision and announced today that the company should replace its board of directors.
Vulnerabilities in PG & E's infrastructure combined with the impact of climate change has contributed to hundreds of California wildfires, including the deadly fire of Camp in 2018. Here is an overview of the improvements to the utility's utility grid that could have prevented these fires. Photo: Reuters
L & # 39; plot. The California Department of Forestry and Fire Protection issued a press release stating that the Tubbs fire in October 2017 was not caused by PG & E, but by a private electrical system. This is a fire less than PG & E is held responsible, and it should reduce its responsibilities.
But will it reduce them enough to avoid bankruptcy? Here is PG & E's statement: "Regardless of today's announcement, PG & E still faces numerous litigation, significant potential liabilities and a deterioration of its financial position, which has also been weakened by the recent deterioration of credit agencies. The resolution of the legal and financial issues related to the 2017 and 2018 forest fires will be extremely complex and will require us to take into account the interests of multiple stakeholders, including thousands of forest fire casualties and people who have lost their lives. others who have already made claims and probably thousands of others that we plan to do. . "
BlueMountain, however, sees a reason why bankruptcy is a bad decision. "Cal Fire's news that PG & E has not caused the devastating Tubbs fire in 2017 is another example of why the company should not rush to bankruptcy, which would be totally useless and damaging for all stakeholders, "said a spokesperson for BlueMountain Capital Management.
Go from the front. PG & E shares rose 75% to $ 13.95 on Thursday after the press release, but the question of whether it declares bankruptcy or not is still a pending issue – and it was even before this decision. Most bankruptcy stocks are trading below 1 USD, but PG & E's still traded between 1 and 5%, suggesting a more uncertain outcome. For most investors, however, the stock is just too volatile to be owned. As if to prove it, its share fell 8.4% to 12.78 USD after trading hours.
Write to Ben Levisohn at the address [email protected]
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