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Pacific Gas and Electric shares opened higher on the first day of trading for the California utility company after emerging from bankruptcy.
PG&E (ticker: PCG) requested the Chapter 11 reorganization in January 2019 after it was discovered that their team caused some of the most destructive wildfires in the state’s history.
Because its restructuring plan was approved by the bankruptcy court last month, the company will be able to participate in a state wildfire fund, half-funded by California taxpayers, created to cover the costs of future catastrophic wildfires. He contributed $ 5 billion to the fund as part of his appearance, the company said.
The fund’s payment and its agreements with insurers and wildfire victims have been funded in part by $ 20 billion in debt and equity sales that the company priced last month. The settlements of the victims of forest fires were also partially financed with new actions. The company’s reorganization plan created a trust for fire victims with capital that represents an approximately 22% stake in the company.
The company also has a new board of directors and a new interim CEO: Bill Smith, a retired AT&T Services executive who has served on the PG&E board since October 2019. His former CEO, former Tennessee Valley Authority executive Bill Johnson , resigned from the position late last month before the company went bankrupt.
The stock rose 1.6% to $ 9.17 late in the morning. It is down about 16% to date and 59% in 12 months.
Write to Alexandra Scaggs at [email protected]
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