Deals
PG&E Dives as Utility Giant Plays Dangerous Game With State
- Company is said to consider bankruptcy filing within weeks
- State may weigh legislation to aid PG&E in fire liabilities
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In weighing a bankruptcy filing, PG&E Corp. officials -- whether intentionally or not -- are putting the pressure on California legislators to bail them out. It’s a dangerous game, though, as Monday’s market reaction showed.
The utility’s stock fell as much as 26 percent while prices on its 6.05 percent notes due in 2034 fell 2.8 percent. The bonds are now the most active in the investment-grade market.