On 29 January 2019, PG&E Corporation Inc. filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the Northern District of California.
The Democrat Governor objected…
Governor Newsom had opposed PG&E’s plan due to its reliance on debt, which he has said could leave it unable to raise the estimated $40-B it will need to repair and modernize its grid to prevent it from causing more disastrous wildfires.
But in Monday’s hearing, a representative of Governor Newsom agreed to lift those objections, after a PG&E attorney said the plan’s passage was critical to secure its commitments from Wall Street investors in the midst of a coronavirus-induced dive in financial markets
And so, on the giant utility won court approval for its $23-B plan to emerge from bankruptcy by mid-Summer, after California Governor Newsom agreed to drop his opposition to it in the face of plunging stock markets and the economic impacts of the C-19 coronavirus
PG&E needs to emerge from bankruptcy by the end of June to access the $21-B state wildfire insurance fund meant to protect it and other California utilities from future wildfire-driven bankruptcies. From there the stock started to recover.
(see the chart below)
PG&E Corporation (NYSE:PCG), through its subsidiary, Pacific Gas and Electric Company, engages in the sale and delivery of electricity and nat gas to residential, commercial, industrial, and agricultural customers in northern and central California, the United States.
The company’s electricity distribution network consists of approximately 107,000 circuit miles of distribution lines, 50 transmission switching substations, and 769 distribution substations; and electricity transmission network comprises approximately 18,000 circuit miles of interconnected transmission lines and 84 electric transmission substations.
Its nat gas system consists of approximately 43,100 miles of distribution pipelines, approximately 6,400 miles of backbone and local transmission pipelines, and various storage facilities.
The company also owns and operates nuclear, hydroelectric, fossil fuel-fired, and solar electricity generation facilities.
PG&E Corporation was incorporated in Y 1905 and is based in San Francisco, California. Currently it has about 23,000 full time employees.
Monday, 4 May, PCG finished at 11, +0.86 and our 3 Key indicators have turned Very Bullish in here.
The Strong Support is at 10.46, Key Resistance is at 17.9, its 11 February high.
On a recovered economy paired with the Chapter 11 reorg, PCG will head North and the long term target is in the 50/70 range.
If you can manage the risk, this is the savvy buy in mark.
Have a healthy day, Keep the Faith!