PG&E shares soar, then lose gains after investors reportedly offer plan to avoid bankruptcy

A PG&E worker attempts to clear a fallen utility pole from Pentz Road in Paradise, Calif., after it was felled by the Camp Fire, Thursday, November 8, 2018.

Karl Mondon | Digital First Media | Getty Images

A PG&E worker attempts to clear a fallen utility pole from Pentz Road in Paradise, Calif., after it was felled by the Camp Fire, Thursday, November 8, 2018.

PG&E shares rose 15% Monday before losing most of the gain after Bloomberg News reported that an investor group has offered company a $4 billion alternative plan that would avoid bankruptcy.

The company said earlier this month that it plans to file for Chapter 11 bankruptcy protection in the aftermath of major fires in 2017 and 2018. PG&E did not immediately respond to a request for comment on the report.

Shares were up 4% at $12.23 in midday trading.

Investigators have already determined PG&E’s equipment was liable in at least 17 major wildfires in 2017 and it remains unclear whether PG&E will be found liable for November’s Camp Fire. That fire killed at least 86 people and destroyed about 14,000 homes, making it the state’s deadliest fire.

CNBC’s Tom Franck contributed to this report.

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