PG&E Corp. bonds and shares plummeted after the California power company failed to make a $21.6 million interest payment due yesterday on its 2040 senior notes, as it planned to seek chapter 11 protection, Reuters reported. Nearly all of the company’s $18 billion in debt was trading down, while the share price has fallen 21.7 percent. In a form filed with the U.S. Securities and Exchange Commission on Monday, PG&E announced its intention to not make the payment. In response to a request for comment, the company cited the SEC filing, which also noted that “Under the indenture governing the 2040 Notes, PG&E has a 30-day grace period to make the interest payment before triggering an event of default.” PG&E, which owns the biggest U.S. power utility by customers, said on Monday it was preparing to file for chapter 11 as soon as this month as it faces a potential $30 billion in liabilities linked to California’s catastrophic wildfires in 2017 and 2018. Its shares and bonds have been falling since.
