P G & E Files Bankruptcy
Cash-starved Pacific Gas and Electric filed for protection this morning under Chapter 11 of the federal
bankruptcy code.
P-G-and-E says California´s lengthy energy crisis has put it some 9 (b) billion dollars in debt — and that debt is increasing by some
300 (m) million dollars a month.
Trading in the company´s stock was halted on the New York Stock Exchange with the price per share at
$11.36.
The bankruptcy comes the morning after Governor Gray Davis proposed easing utility debts by giving them a share of a record rate increase
approved last week. He also said he wants to continue negotiating with the company on a plan for the state to acquire P-G-and-E´s transmission
lines.
Davis spokesman Steve Maviglio said the filing came as a complete surprise.
