PG&E the natural gas company has shocked the investors after declaring that the company might file for the bankruptcy because of the loss the company is facing due to the last years California’s Wildfire issue. In previous year California met the problem of wildfire which burden down the majority of the wild area and PG&E is accused of starting this Wildfire. According to sources company’s power lines caused Wildfire in California which has destroyed acres of natural land plus 86 people were also killed in this natural disaster. The result of this accusation is now the company has the liability of more than $30 billion which they will soon have to pay, and to survive in that situation, the company is thinking of filing for bankruptcy.
On Sunday, the chief executive officer of PG&E resigned amid of the bankruptcy situation and immediately company has appointed an interim CEO till the problem gets solved. There are more than 20000 employees who work under this company, and now due to the news of bankruptcy, they are on the verge of being jobless. However, PG&E has clarified that the company will be providing the electricity without any disruption. In the statement issued by the PG&E, it clearly shows that the company is finally decided that it will soon plan for bankruptcy to sustain in business.
Many investors of the company have lost their faith in the company’s future, and the majority of them are withdrawing their money; as a result company’s stock prices have decreased drastically. However, according to state law before filing for bankruptcy, a company will have to give its notice to the investors and subsidiary companies, we will have to wait what action PG&E is going to take.