What happened 

Shares of PG&E Corporation (PCG 0.89%) had another terrible day Tuesday following Monday's 50% drop. At one point, shares were down as much as 39.5% again today, although some of that was gained back and shares were down 23.5% at 2:55 p.m. EST. 

So what

If investors didn't believe that bankruptcy was imminent on Monday, they should believe it now, because PG&E missed an interest payment of $21.6 million that caused its $18 billion of debt to fall on the bond market. 

Power lines with partly cloudy skies at dusk.

Image source: Getty Images.

On top of the company missing the bond payment, board of directors member Roger Kimmel resigned, and both S&P 500 and Fitch downgraded their ratings of PG&E's debt. Both are bad signs for what could be a contentious bankruptcy process. 

Now what

We knew that bankruptcy was imminent yesterday because that's literally what management told us. But shares haven't gone to near zero yet, which sometimes can be for structural reasons like covering short positions or buyers who hold out hope there's value for shares in bankruptcy. I think the more likely position is that PG&E shareholders will get wiped out, and that means there's even farther for the stock to fall.

Check out the latest PG&E earnings call transcript.