Author Topic: PG&E - Potential Bankruptcy  (Read 13790 times)

DRValue

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Re: PG&E - Potential Bankruptcy
« Reply #40 on: January 17, 2019, 06:29:13 AM »
Quote
I've also read if pcg is split up there's a potential for rural customer energy to be priced too high as they won't have the urban "subsidy". Smaller entities also won't scale.

Is that so? I know a town next to where I live who bought back their grid from National Grid years ago and they enjoy much lower electricity rates than I do. Their grid also seems to be more reliable, as they had little outages during the snowmaggedon in March 2018 and what went out was quickly repaired. I rented at this time in NG Territory and my Appartement was without power for a week. Maybe just the exception from the rule, but there does seem to be easy to make it a truly local utility work.

The town in question is a rural community of roughly 10,000 people.

That's interesting. I'll try and find the reference to the article but they didn't mention sizes of the community. It's good to have opposing information.
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LongHaul

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Re: PG&E - Potential Bankruptcy
« Reply #41 on: January 17, 2019, 06:37:02 AM »
Do you know what the following means?

KYJ
Fraudulent Conveyance
DIP
Cram Down
Stalking Horse Bid
Pre-petition vs Post Petition
Absolute Priority
GUC
EC
First Day Pleading
Sign In Sheet
PACER
Docket
Disclosure Statement
Bankruptcy Plan
Claim Transfers
Chapter 11 vs Chapter 7
Equitable


If you don't know most of these terms, maybe you want to stay on the sideline.

Thanks for posting this.

What are KYJ And EC?

gfp

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Re: PG&E - Potential Bankruptcy
« Reply #42 on: January 17, 2019, 06:44:07 AM »
would assume EC references the Equity Committee but BG will know better

LongHaul

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Re: PG&E - Potential Bankruptcy
« Reply #43 on: January 17, 2019, 07:01:29 AM »
Inverse Condemnation  - seems like the elephant in the room.

Unless Cali reverses Inverse Condemnation why would I invest in PG&E stock or bonds?
Every summer and fall it is like playing a financial version of Russian roulette. 
There could easily be a $10b - $20b+ liability in many years to come and additional liability where investors get wiped out.  I don't like relying on Cali regulators to bail me out either. 

Eye4Valu

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Re: PG&E - Potential Bankruptcy
« Reply #44 on: January 17, 2019, 07:59:27 AM »
FWIW, Morningstar believes there is residual equity value post bankruptcy. Price target of $11.

DRValue

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Re: PG&E - Potential Bankruptcy
« Reply #45 on: January 17, 2019, 08:04:12 AM »
FWIW, Morningstar believes there is residual equity value post bankruptcy. Price target of $11.

We shall see, I think its one to follow.
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JRM

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Re: PG&E - Potential Bankruptcy
« Reply #46 on: January 17, 2019, 09:16:56 AM »
FWIW, Morningstar believes there is residual equity value post bankruptcy. Price target of $11.

We shall see, I think its one to follow.


The problem is instead of investing additional money in line clearing and maintaining equipment they have these distractions to deal with and likely won't be able to get ahead of the curve for maintaining reliable equipment.  This is not another BP situation.  Hopefully the first question asked is: how do we prevent this from happening again? 

walkie518

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Re: PG&E - Potential Bankruptcy
« Reply #47 on: January 17, 2019, 09:21:39 AM »
Inverse Condemnation  - seems like the elephant in the room.

Unless Cali reverses Inverse Condemnation why would I invest in PG&E stock or bonds?
Every summer and fall it is like playing a financial version of Russian roulette. 
There could easily be a $10b - $20b+ liability in many years to come and additional liability where investors get wiped out.  I don't like relying on Cali regulators to bail me out either.
100% agree here

However, if CA doesn't reverse, but bails out PG&E, this might change my opinion on the stock...

DRValue

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Re: PG&E - Potential Bankruptcy
« Reply #48 on: January 18, 2019, 02:24:57 AM »
Open letter from Blue Mountain Capital:

https://www.bluemountaincapital.com/wp-content/uploads/2019/01/BlueMountain-letter-to-PGE-dated-1.17.19.pdf

I don't have a position on the analysis, but it does tie in with my current thinking about this being a liability management exercise to cap claims with leverage, and also that the cash flows will be BP'esque.

Also good to know that there would be a shareholder advocate willing to fight, not that my first thought was to buy the equity.
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gfp

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Re: PG&E - Potential Bankruptcy
« Reply #49 on: January 18, 2019, 06:28:56 AM »
Still curious on KYG.  Is it K as in the common abbreviation for "contract"?

Is this some type of contract that was entered into with misidentified or mistaken identity of the parties? do tell

Do you know what the following means?

KYJ
Fraudulent Conveyance
DIP
Cram Down
Stalking Horse Bid
Pre-petition vs Post Petition
Absolute Priority
GUC
EC
First Day Pleading
Sign In Sheet
PACER
Docket
Disclosure Statement
Bankruptcy Plan
Claim Transfers
Chapter 11 vs Chapter 7
Equitable


If you don't know most of these terms, maybe you want to stay on the sideline.

Thanks for posting this.

What are KYJ And EC?