Shares of Pacific Gas & Electric Co. (PCG) ended down another 17.54% at $6.91 on Tuesday as the company moves closer and closer to filing for bankruptcy over billions of dollars of potential liability for California's recent wildfires, which some blame on sparks from PG&E utility lines.
The potential liabilities recently pushed rating agencies S&P Global Ratings and Moody's to cut the company's rating to junk, while PG&E recently announced plans to begin voluntary bankruptcy proceedings under Chapter 11 by Jan. 29. At one point Tuesday, shares were down almost 40%. All told, the stock has lost some 86% of its value since hitting $49.11 intraday less than three months ago on Oct. 17.
The utility company announced late Sunday that Geisha Williams was stepping down as CEO and has resigned from the boards of both the utility and its holding company. Company veteran John Simon was named interim CEO. Meanwhile, California Gov. Gavin Newsom told reporters that his team was discussing the possibility of helping the company stay solvent.
The Wall Street Journal says the stock was once a hedge-fund-darling, as it was thought to be safe. But more than 15 months ago, Jim Cramer commented on Oct. 13, 2017, about the bumpy road he saw ahead for PG&E -- sharing his concerns about Cali wildfires even then.