PG&E Bankruptcy

Michael Pollak mpollak at panix.com
Sat Apr 7 06:22:46 PDT 2001


The answer to my question -- Why doesn't bankruptcy mean shareholders eat the losses they so richly deserve? -- is perhaps already given in this paragraph from an article in today's NYT:

<quote>

A few months ago, in a move widely criticized by consumer groups and

legislators, the PG&E Corporation took steps to ensure that the assets

of its other subsidiaries would not be seized in case of a Pacific Gas

bankruptcy. Just this week the State Public Utilities Commission said

it would investigate whether Pacific Gas and Electric, Southern

California Edison and the state's No. 3 investor-owned utility, San

Diego Gas and Electric, had engaged in any financial misconduct by

funneling billions to their parent companies to pay dividends and

repurchase stock.

<endquote>

Full article at http://www.nytimes.com/2001/04/07/business/07ENER.html

Michael

__________________________________________________________________________ Michael Pollak................New York City..............mpollak at panix.com



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