>> California's biggest utility PG&E announced Monday it plans to file for bankruptcy as it faces potentially crushing liabilities over its role in the recent and deadly California wildfires. Shares of PG&E plunged as much as 50% on the news. Reuters Liana Baker.>> The 2017 wildfires racked up billions of dollars in liabilities for PG&E, and things turned even worse with the wildfires in 2018.
Now PG&E is on the hook for $30 billion worth of potential liabilities. So they're just trying to stay afloat and try to keep everything under control, because there's a lot of stakeholders that need something out of PG&E whether it's people whose houses burned down their creditors, people that owe PG&E owes money to
>> If it's equipment is blamed for causing the wildfires, PG&E has said its insurance can't cover the liabilities. And company advisors expected it may take up to two years for PG&E to emerge from bankruptcy.>> The company is gonna deal with all of its liabilities and all the people who have some sort of beef with PG&E through bankruptcy court.
So this is the right venue for everything to be sorted out. If it wasn't a bankruptcy, it would sink the company to have to deal with these many problems at one time.>> Since November, two thirds of his market cap has been wiped out while instead has been downgraded to junk and just the day before the bankruptcy announcement, PG&E CEO quit.