PG&E Plummets After Bankruptcy Judge Allows For Rival Chapter 11 Exit Plan

PG&E Corporation PCG shares traded 30% lower Thursday morning after the judge presiding over the company’s bankruptcy cleared the way for bondholders to come up with a restructuring plan.

The company was stripped of its right to exclusively pitch a reorganization plan in court, escalating an an already heated battle over the largest utility bankruptcy in U.S. history.

The damages, which are tied to the blazes that its equipment ignited, forced the company to file for Chapter 11 bankruptcy in January.

See Also: Northern California Faces Widespread Power Shutoffs In Face Of Wildfire Threat

It's reported the U.S. bankruptcy judge Dennis Montali has said he will allow bondholders including Pacific Investment Management Co. and Elliott Management Corp. to pitch their own restructuring plan alongside PG&E’s, so they can both come up with ways the utility could deal with an estimated $30 billion in wildfire liabilities.

PG&E shares were down 28.19% at $7.88 Thursday afternoon.

The stock has a 52-week high of $49.42 and a 52-week low of $5.07.