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PG&E Plunges into Crisis as It Confronts Reckoning Over Fires (1)

Nov. 14, 2018, 4:31 PMUpdated: Nov. 14, 2018, 5:30 PM

California’s biggest utility was plunged into full-blown crisis by the possibility that its equipment sparked the catastrophic wildfires ravaging the state.

Shares of PG&E Corp. plummeted as much as 18 percent Nov. 14 after the company said it had exhausted its revolving credit lines, signaling its growing financial stress.

“It really raises a lot of fears for investors,” Bloomberg Intelligence analyst Kit Konolige said. “It seems to me that it’s maybe a desperation move.”

PG&E has a total of $3.46 billion in cash and cash equivalents, and another $1.4 billion in wildfire insurance coverage, according to regulatory filing Nov. 13. ...

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