PG&E declines as stakeholders clash; U.S. Steel notes weaken after revised outlook

By James McCandless

San Antonio, Oct. 2 – The distressed debt market was overall weaker, focused again on the newsmakers of the day.

PG&E Corp.’s notes were in decline as creditors and stockholders clash over the company’s exclusive right to propose a restructuring plan.

The 6.05% notes due 2034 dropped 1¾ points to close at 112¼ bid.

The San Francisco-based bankrupt electric utility’s structure saw negativity after a group made up of creditors, wildfire victims and other stakeholders said that it supports ending the company’s exclusive right to propose a restructuring plan.

The group argued that ending the exclusivity would allow for competition in the development of a plan, increasing the chance of giving the best outcome to those affected most by its bankruptcy.

PG&E’s plan would see an $8.4 billion cap in wildfire victim payouts, retaining shareholder value.

Meanwhile, United States Steel Corp.’s issues fell after a ratings agency revised its view of the company for the worse.

The 6¼% senior notes due 2026 lost 1½ points to close at 81½ bid. The 6 7/8% senior notes due 2025 shed 1¾ points to close at 87½ bid.

On Wednesday, S&P Global Ratings revised its view of the Pittsburgh-based steel manufacturer to negative from stable.

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