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California Utility PG&E Considers Filing for Bankruptcy

posted by takyon on Monday January 07 2019, @06:43AM   
from the fire-sale dept.

Arthur T Knackerbracket has found the following story:

California utility company PG&E Corp is exploring filing some or all of its business for bankruptcy protection as it faces billions of dollars in liabilities related to fatal wildfires in 2018 and 2017, people familiar with the matter said on Friday.

The company is considering the move as a contingency, in part because it could soon take a significant financial charge for the fourth quarter of 2018 related to liabilities from the blazes, the sources said.

A bankruptcy filing is not certain, the sources said. The company could receive financial help through legislation that would let it pass on to customers costs associated with fire liabilities, the sources said. But that is just a possibility, they said, so bankruptcy preparations are being made.

Also at NPR and Bloomberg.

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Original Submission

• Widows and orphans Widows and orphans (Score: 1, Interesting) by Anonymous Coward on Monday January 07 2019, @07:01AM (2 children)

  by Anonymous Coward on Monday January 07 2019, @07:01AM (#783072)

  From an investor's standpoint, their stock is a fantastic example of how even stodgy old utility stocks aren't foolproof. Stop loss or better yet hedges based on options should be a consideration with any stock. Diversification can also help. This isn't the first time PGC has been in trouble. It bounced back the last time. They might not be so lucky this time. The "widows and orphans" who depend on steady dividend checks will be OK if this is less than 1% of their portfolio as it often is with a diversified mutual fund. OTOH, if you had all your eggs in this basket and you were "naked when the tide went out", you have only yourself to blame.

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• Re:Widows and orphans (Score: 2, Interesting) by realDonaldTrump on Monday January 07 2019, @12:40PM

  by realDonaldTrump (6614) on Monday January 07 2019, @12:40PM (#783137) Homepage Journal

  So true, the smart (rich) folks always Diversify. We love Diversity!!!

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• Re:Widows and orphans (Score: 1) by khallow on Monday January 07 2019, @02:49PM

  by khallow (3766) on Monday January 07 2019, @02:49PM (#783190) Journal

  From an investor's standpoint, their stock is a fantastic example of how even stodgy old utility stocks aren't foolproof.

  PG&E was a bad bet from 2000 on due to the California electricity crisis (for which it almost went bankrupt) and has huge pension liabilities. Even the wildfire angle isn't new, they had the same problems in previous years. Anyone still invested hasn't been paying attention for a long while.
  
  That's the thing about stodgy stocks, they're not foolproof, but you can see the end coming a long ways off.

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