Many utility industry analysts believe that Newsom is scheming to have the State of California nationalize PG&E by engineering a wipeout of public shareholders and forcing holders of PG&E's $18-billion debt to take a "big principal haircut."
Posted on 02/15/2019 7:04:59 AM PST by SeekAndFind
Gov. Gavin Newsom announced that the insolvent State of California is putting together a "Strike Team" that could move to nationalize the assets of the bankrupt PG&E utility.
Newsom told lawmakers in his State of the State speech, "We're facing hard decisions that are coming due." In his first month in office, Newsom has been dealing with a $7-billion tax shortfall since December, $1 trillion in unfunded public employee pensions, President Trump threatening to withhold $9 billion in wildfire aid, and cancelation of the state's $98.1-billion high-speed rail boondoggle.
Undeterred by the tsunami of grim financial challenges, the wildly progressive rookie governor trumpeted that he had convened a "Strike Team" supposedly crewed by the nation's best bankruptcy attorneys and financial experts from across the energy sector to develop a comprehensive PG&E strategy to unveil within the next 60 days.
Many utility industry analysts believe that Newsom is scheming to have the State of California nationalize PG&E by engineering a wipeout of public shareholders and forcing holders of PG&E's $18-billion debt to take a "big principal haircut."
A webinar featuring Karol Denniston, senior bankruptcy partner in the San Francisco office of Squire Patton Boggs, highlighted that PG&E before filing its second Chapter 11 was still burdened from the aftermath of its first bankruptcy in 2001, on criminal probation for its gas line explosion in 2010, liable for $20 billion from 2017 wildfires, and liable for another $10 to $20 billion for 2018 wildfires.
(Excerpt) Read more at americanthinker.com ...
Does that mean that the Federal Gov needs to pay the bill?
Yep!
Sounds like the obama GM “bailout.”
Despite a 100 years of contract law.
Everyone takes a haircut except the unions.
The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.
Vladimir Lenin
Actually no. Jerry Brown, prior to leaving office, signed legislation allowing power utilities (read PG&E) to bill their customers to offset legal judgements. Nice, huh?
So, the state rate commission prevented the company from establishing viable rates, and now explains that, oh, so sad, we’re gong to have to take you over. Typical Socialist/Fascist/Communist tactic.
Trump should order the Justice Dept. to perform a forensic audit on the $3.5 billion Federal subsidy to the California rail project. Suspect the result would be that many of Trump’s Democratic enemies would be indicted.
They are going to be freezing in the dark soon...
“Despite California’s residential utility rates of 19.53 cents per kilowatt hour, almost double the 10.95 cents in Oregon and 9.46 cents in Washington, Denniston forecasts that PG&E utility rates are going up substantially”
Gavin Maduro.
Go for it.
California is leading the way to Venezuelaville.
Before the new “governor” of California took over for Jerry Brown, Brown, et al, quietly rushed through legislation to put the issue of the solvency of PG&E on the backs of the tax payer basically holding PG&E harmless financially for their issues.
PG&E is not only too big to manage (a concept the Sacramento Democrat government totally ignored) but needs to be broken up into smaller companies and run by competent management — certainly not NATIONALIZED by a socialist, radical leftist state government.
Taking over (nationalizing) a large operation like PG&E is a Marxist wet-dream. Grabbing control of ANYTHING and giving control to the government would probably destroy any hope of cleaning it up and setting up proper management. This, if California history is any measure, would FAIL!!!
“forcing holders of PG&E’s $18-billion debt to take a “big principal haircut.”
They mean “steal”. This is why I told my financial investment advisor “no bonds”. If GM bondholders weren’t safe then no one is safe.
L
“Everyone takes a haircut except the unions.”
MILLIONS are still thinking that when a bank personage says “ It’s guaranteed by the FDIC “ or something like — ‘Your money is gtd by the FDIC or PBGC for this pension plan’ that they are - home free-
Anyone recall the FSLIC ?
YOU’RE Screwed folks !
Nationalize or state-ize?
“If GM bondholders weren’t safe then no one is safe.”
MILLIONS are still thinking that when a bank personage says “ It’s guaranteed by the FDIC “ or something like — ‘Your money is gtd by the FDIC or PBGC for this pension plan’ that they are - home free-
Anyone recall the FSLIC ?
YOU’RE Screwed folks !
DO IT California, DO IT! Run the state into the ground.
With New York and California some states need to fail which will demonstrate why socialism does not wok!
Read the fine print on that FDIC “guarantee” sometime. It surprise most folks.
L
No haircut in this game.
More like decapitation for the shareholders, evisceration for bondholders and the ratepayers will be placed on the wheel.
Unions? They get a free lunch and paid vacation.
The same playbook as the BIG AUTO BAILOUT.
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