FAST FIVE: PG&E Plunges Most Since Chapter 11 Filing After Losing Bankruptcy Exclusivity
The stock reaction was a dramatic wake up call for those PCG BTFDers who were hoping that the equity would be reinstated at a sizable valuation: PCG stock plunged as much as 32%, its biggest one-day drop since the January bankruptcy filing.
Initially, no other competing proposals are allowed, so the bondholders needed permission from Montali before they could proceed.
According to bankruptcy court, the creditors can now propose their own ways for the utility to deal with an estimated $30 billion in wildfire liabilities.
“It's a big deal, because now the shape of the reorganization is no longer in existing management's hands,” said Stephen Lubben of the Seton Hall University School of Law.
“This would be devastating for my retirement,” shareholder Andreas Krebs of San Francisco wrote to the judge a day before the ruling.