The developments further dimmed the financial picture for the utilities, reaffirming fears that they could tumble into bankruptcy.
People are very concerned. . . .
When that happens, you burn through cash very quickly. The rate increase is just not enough to stem the drain of cash. The stocks cut their losses somewhat after reports of the bailout effort reached investors, but the shares still suffered serious damage. But if I were a bank or other lender . . . I would not lend another dime to these companies unless I am provided with some reasonable assurance that the money can be repaid.