(Bloomberg) -- Municipal bonds backed by PG&E Corp. have slid as the fallout from California’s devastating wildfires pushes the electric utility closer toward bankruptcy, raising the risk that even debt that was issued through government agencies may not be paid back in full.

The price of a bond issued through the California Infrastructure and Economic Development Bank that are backed by the utility’s revenue have tumbled to an average of 81 cents on the dollar from 90.1 cents in mid-December, according to data compiled by Bloomberg shows.

The drop comes as PG&E edges toward seeking court protection from its creditors for the second time in as many decades after the deadliest fires in California history left it facing as much as $30 billion of liabilities. The company has seen two-thirds of its stock market value wiped out since the blazes last year.

Over the weekend, PG&E Chief Executive Officer Geisha Williams stepped down, and the the company said it will file for a Chapter 11 bankruptcy by Jan. 29 after giving the required 15-day notice to its employees, according to filing at the Securities and Exchange Commission.

Related: PG&E Plans Bankruptcy Filing as California Wildfires Costs Mount

To contact the reporter on this story: Danielle Moran in New York at dmoran21@bloomberg.net

To contact the editors responsible for this story: James Crombie at jcrombie8@bloomberg.net, William Selway, Dave Liedtka

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