PG&E lower amid state settlement news; California Resources drops as fracking halted

By James McCandless

San Antonio, Nov. 19 – Tuesday’s distressed debt session moved on newsmakers in the utilities, energy and telecom sectors.

PG&E Corp.’s notes finished under pressure as the company comes close to finalizing a settlement with state regulators over equipment failures.

The 6.05% notes due 2034 shaved off ½ point to close at 101 bid.

News broke on Tuesday that the San Francisco-based bankrupt electric utility is close to finalizing a settlement with California regulators for allegedly failing to maintain equipment that allegedly sparked 2017 wildfires in the state.

The company would pay $1.7 billion to settle the claims.

It is also facing pressure to close a $4.6 billion funding gap that would support its restructuring efforts, reporting $7.4 billion in hand so far.

In oil and gas, California Resources Corp.’s issues dropped after California halted approvals of new fracking operations permits.

The 6% senior notes due 2024 shed 7 points to close at 19 bid. The 8% senior notes due 2022 dived 8 points to close at 28½ bid.

The Los Angeles-based independent oil and gas producer’s structure saw losses after the California governor announced a halt of new fracking permits within California, with orders for state regulators to assess the safety of the process.

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