PG&E notes rise as company files amended plan; Chesapeake gains amid delisting warning

By James McCandless

San Antonio, Dec. 13 – Activity in the distressed debt market focused largely on the utilities and energy sectors on Friday.

PG&E Corp.’s notes saw better movement after the company filed an amended reorganization plan in bankruptcy court.

The 6.05% senior notes due 2034 added ¼ point to close at 106¼ bid.

Late Thursday, the San Francisco-based bankrupt electric utility filed an amended plan of reorganization with the U.S. Bankruptcy Court for the Northern District of California to reflect settlements with all major groups of wildfire claimants, Prospect News reported.

The company said the amended plan satisfies California regulations with $13.5 billion in compensation for wildfire victims and some limited public entities and $11 billion for insurance subrogation claimants.

It also said that the plan keeps it on track to participate in the state’s new wildfire fund by the June 30, 2020 deadline.

In oil and gas, Oklahoma City-based Chesapeake Energy Corp.’s notes gained amid news that the company has received a delisting notice from the New York Stock Exchange for its common stock.

The 8% senior notes due 2025 rose ½ point to close at 59 bid. The 8% senior notes due 2027 picked up ½ point to close at 62 bid.

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