Utility Blamed for Deadly California Wildfire Sees Stocks Rally in Bankruptcy
PG&E, California's biggest utility provider, rallied nearly 10% Tuesday after the company reported it has lined up $5.5 billion to fund its bankruptcy, which is linked to last November's deadly California wildfire.
In a filing dated Monday, the utility said that four banks — JPMorgan Chase Bank, Bank of America, Barclays Bank PLC and Citigroup Global Markets — agreed to provide debtor-in-possession financing for its operations during a bankruptcy process that it expects to take about two years.
Last Monday, the company said it intends to file bankruptcy petitions at the end of the month to reorganize under Chapter 11 protection — two months after the deadliest and most destructive wildfire in California history broke out. PG&E said it was having trouble with its transmission lines when the blaze erupted and that it may be responsible.