By Stephen Nakrosis 
 

Shares of PG&E Corp. (PCG) were trading higher in Monday's market.

At 2:50 p.m. EST, the stock had gained 16.02% in the day's market, trading at $7.48. Volume topped 28.8 million shares, above the 65-day average volume of just over 15 million shares.

Last week, California Gov. Gavin Newsom said the state might intervene if the company's shareholders and bondholders can't quickly agree on a reorganization plan. "PG&E as we know it, may or may not be able to figure this out, if they cannot we are not going to sit around and be passive," Mr. Newsom said. "The state will prepare itself as backup for a scenario where we do that job for them."

Trading in the California utility had been halted around 2:29 p.m. EST Monday, due to volatility. Trading resumed about 15 minutes later.

The Wall Street Journal said last month PG&E management proposed a restructuring plan that would see it raise both debt and equity financing, which is backed by major institutional shareholders collectively holding 51% of the PG&E's equity. Bondholders have put forth a rival plan that would almost wipe out existing equity and put firms like Elliott Management Corp. in control of the company after it emerges from court protection.

PG&E filed for bankruptcy protection in January, as if faces potential liabilities from its role in sparking California wildfires.

 

--Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

 

(END) Dow Jones Newswires

November 04, 2019 15:14 ET (20:14 GMT)

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