four
5,087 posts
msg #146314
- Ignore four
modified |
1/29/2019 3:49:15 PM
https://finance.yahoo.com/news/hedge-fund-pge-losses-160917499.html
On Tuesday, PG&E (PCG), the California-based energy and utility giant, filed for chapter 11 bankruptcy following the massive liabilities the power provider faces in the wake of the wildfires.
Famed value investor Seth Klarman, the founder of Boston-based Baupost Group, is the largest hedge fund shareholder of PG&E and has seen his position decline 74% in the last few months.
In a letter to investors sent last week, Klarman explained that the fund purchased PG&E right before the stock "slumped badly" on "tragic developments that led to financial distress." He added that the fund remained a holder.
The Camp Fire that broke out on November 8, 2018 in Northern California was the deadliest in the state’s history.
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snappyfrog
721 posts
msg #146315
- Ignore snappyfrog |
1/29/2019 4:09:55 PM
I'm holding puts
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VenturaTrader
43 posts
msg #146326
- Ignore VenturaTrader |
1/30/2019 3:41:33 PM
PG&E may not be worried much about its stock or bondholders, but at least they have the concern to ask for $130 million dollars to pay for bonuses to keep their employees motivated.
https://www.zerohedge.com/news/2019-01-29/bankrupt-pge-seeks-pay-130-million-2018-bonuses
Earlier this month when the CEO of PG&E announced the BK, she jumped ship and resigned; it was revealed that she would walk out the door with nearly $4 million in severance after being on the job for about two years. PG&E also wants to set aside $327 million per year in pension contributions and $109 million per year for 401 matches.
I get my utilities from PG&E. Ya think there is a rate increase in my future? Hmmm...
Same thing at Sears when they declared bankruptcy; executives asked the bankruptcy judge to approve $23 million in bonuses for upper level management (who drove the company into the ground.)
Never forget that when GM was bailed out by the government, the bond holders were wiped out! Investors and retirees who were holding the bonds for income were screwed and lost their principle.
Apparently it pays very well for executives to perform poorly and destroy companies.
Mike
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four
5,087 posts
msg #146362
- Ignore four |
2/1/2019 1:41:05 AM
https://www.barrons.com/articles/why-a-short-selling-hedge-fund-says-pg-e-stock-is-going-to-zero-51548962268?siteid=yhoof2&yptr=yahoo
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VenturaTrader
43 posts
msg #146384
- Ignore VenturaTrader |
2/1/2019 9:14:07 PM
Four, thanks for the article. It answered some of my questions. It appears the shareholders, bondholders, and debtors will get a haircut and we ratepayers will get reamed. Not to worry: bonuses, pension payments, 401k matches, Cadillac medical care and high salaries will continue as if nothing happened!
Mike
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four
5,087 posts
msg #146403
- Ignore four |
2/2/2019 4:21:19 PM
Ventura,
Not hard to find the pattern.... Here is another
https://ktvh.com/news/2018/12/14/westmoreland-coal-top-exec-resigns-takes-bonus-designed-to-keep-him-through-bankruptcy/
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