: Hawaiian Electric’s stock slides 25% premarket on report utility is in restructuring talks
Hawaiian Electric Industries Inc.’s stock HE cratered 25% in premarket trade Thursday, after a report the company is in restructuring talks to explore its legal and financial options following devastating wildfires in Maui. The utility is mulling the strategies it can pursue and is looking to determine whether it needs to hire legal and financial advisers, the report in the Wall Street Journal said, after lawsuits alleging that its actions contributed to the devastation caused by the wildfires. S&P Global Ratings on Tuesday cut its rating on the company’s debt to BB-, which is “junk” or speculative-grade status, making it more expensive for the company to borrow money. Class-action lawsuits have been filed against Hawaiian Electric and subsidiaries including Maui Electric Co., which “has increased the risk of a material deterioration in [Hawaiian Electric’s] credit quality, should the plaintiffs prevail,” S&P Global said Tuesday.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.