PG&E notes unchanged amid negative headlines; WeWork higher despite financing woes

By James McCandless

San Antonio, Oct. 11 – The distressed debt space finished the week focused on many of the names that shook the market with news.

PG&E Corp.’s notes were active but unchanged amid negative headlines of its planned outages and its restructuring process.

The 6.05% notes due 2034 finished level at 114 bid.

The San Francisco-based bankrupt electric utility’s structure has been heavily traded this week amid continual shifts in its restructuring landscape.

The notes were sunk after news broke on Wednesday that the company’s bankruptcy court judge had terminated the PG&E’s exclusive right to submit a restructuring plan.

After a committee of creditors, wildfire victims and other stakeholders pushed their own plan, the judge allowed them to officially submit it in the hopes that the two sides could come to a settlement.

As of this week, the company’s plan calls for a cap of $8.4 billion in victim payouts whereas the opposing group outlines a $13.5 billion cap.

Elsewhere, coworking name WeWork Cos. Inc.’s issues pushed higher despite reports of its financing troubles.

The 7 7/8% senior notes due 2025 gained 4˝ points to close at 87 bid.

Manufacturer United States Steel Corp.’s paper was lifted in the wake of its release of preliminary third-quarter results.

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