PG&E cuts deal with Calif. Gov. Newsom to exit bankruptcy: reports
PG&E Corp. shares rallied in the extended session after the utility cut a deal with Calif. Gov. Gavin Newsom on an operations overhaul to help it emerge from bankruptcy, according to media reports late Friday. PG&E shares surged 13% after hours, following an 8.7% drop to close Friday at $7.22. Under the deal, PG&E said it will spend billions of dollars to prevent wildfires. "This is the end of business as usual for PG&E," Newsom said in a statement. "We secured a totally transformed board and leadership structure for the company, real accountability tools to ensure safety and reliability and billions more in contributions from shareholders to ensure safety upgrades are achieved." PG&E has also agreed to put itself up for sale if it does not emerge from bankruptcy by June 30. As recently as Monday,PG&E had won court approval to raise $23 billion to help it get out of bankruptcy.
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