USA Pacific Gas & Electric

[bklynboy]

Anyone else work for a company or have clients holding PG&E bonds? At my company I am getting a bit of heat to not take an impairment despite them planning to go bankrupt, missing interest payments and potential liabilities from wildfires among other issues. Curious what others may think ....does anyone believe investors can recover the cost based on facts as they exist today?

 

[kirby]

I've often said that a required text for an accounting curriculum should be "The Emperor's New Clothes" by Hans Christian Anderson. The application here is that management "sees" the future recovery of the bond value when there is a snowball's chance that the value will come back. Then management insists that others must see what they see, else the nonbeliever is not "on the team."