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PG&E Filed For Bankruptcy. Here’s Why Its Stock Is Rising
PG&E stock was up 16% to $13.92 at 1:26 p.m. That’s pretty counterintuitive: In the hierarchy of investors that get paid when a company files for bankruptcy, shareholders rank last, behind bondholders, lawyers and in this case, wildfire victims.
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There are a few reasons that the investors in PG&E’s stock aren’t cutting and running now. First, there is a chance the company’s bankruptcy won’t be accepted by the court. That’s because, as Morgan Stanley analyst Stephen Byrd and his team explain in a note today, the company is still essentially solvent. PG&E’s bankruptcy filing says it had $880 million of cash on its books as of Jan. 28. And the judge doesn’t necessarily have to accept its petition for bankruptcy, as the analysts write:
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https://www.barrons.com/articles/pg-e-fi...yptr=yahoo
![[Bild: PCGc1dl1402.png]](https://finviz.com/publish/012919/PCGc1dl1402.png)
PG&E stock was up 16% to $13.92 at 1:26 p.m. That’s pretty counterintuitive: In the hierarchy of investors that get paid when a company files for bankruptcy, shareholders rank last, behind bondholders, lawyers and in this case, wildfire victims.
...
There are a few reasons that the investors in PG&E’s stock aren’t cutting and running now. First, there is a chance the company’s bankruptcy won’t be accepted by the court. That’s because, as Morgan Stanley analyst Stephen Byrd and his team explain in a note today, the company is still essentially solvent. PG&E’s bankruptcy filing says it had $880 million of cash on its books as of Jan. 28. And the judge doesn’t necessarily have to accept its petition for bankruptcy, as the analysts write:
...
https://www.barrons.com/articles/pg-e-fi...yptr=yahoo
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