PG&E Stock Hits Record Low, Misses Interest Payment As Bankruptcy Nears

PG&E bonds are crashing and its stock just hit a new record low after the company opted not to make an interest payment today on its $800m of 5.4% bonds due Jan. 15, 2040, triggering a 30-day grace period on the note, according to data compiled by Bloomberg.

PG&E is now trading below of the lows of the last bankruptcy (before its bailout)...

PG&E Stock Hits Record Low, Misses Interest Payment As Bankruptcy Nears 2019-01-15_8-23-35

PG&E Stock Hits Record Low, Misses Interest Payment As Bankruptcy Nears 2019-01-15_8-23-35

If PG&E goes bankrupt as expected, it will be the first investment-grade name to default without entering the U.S. high-yield market since MF Global in 2011, Bank of America strategists led by Hans Mikkelsen said in a note.

Additionally, PG&E would be third largest IG default since 1999. Its $17.5b of index-eligible debt puts it behind Lehman ($34.9b) and Worldcom ($22.9b).

As Bloomberg reports, the filing, viewed by some as the worst outcome, may actually help California decide what type of utility is right for a state with an ever-increasing risk of multibillion-dollar wildfires, according to Severin Borenstein, an energy economist at the University of California, Berkeley. Options such as breaking up the utility giant or turning it into government-owned entities are likely to be hashed out in concert with the bankruptcy proceeding, he said.

https://www.zerohedge.com/news/2019-01-15/pge-stock-hits-record-low-misses-interest-payment-bankruptcy-nears?fbclid=IwAR2T3t605yON_5J-5osYocUeYx4YHCsacmL1tHNrFCfM4YQ9iaLxCbavE6M

PG&E Stock Hits Record Low, Misses Interest Payment As Bankruptcy Nears

PG&E Stock Hits Record Low, Misses Interest Payment As Bankruptcy Nears

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