PG&E Files for Bankruptcy Protection in Face of Large Wildfire Liabilities – The New York Times

BlueMountain Capital Management, one of PG&E’s major investors, said in a statement that the bankruptcy filing was “reckless and irresponsible” and called for replacing the company’s board of directors.

“Today’s filing is the latest example of how the board continues to fail the company, wildfire victims, customers, employees, creditors, shareholders and the people of California,” the asset management firm said in the statement. “We urge all stakeholders to support change at PG&E and will be proposing a new slate of highly qualified and impartial directors.”

But by the start of this week, many investors and state officials appeared resigned to the company’s filing. The California Public Utilities Commission held an emergency meeting Monday afternoon to give its approval to PG&E’s plan to borrow $5.5 billion to finance itself over the next two years while it is in bankruptcy.

“Throughout this process, we are fully committed to enhancing our wildfire safety efforts, as well as helping restoration and rebuilding efforts across the communities impacted by the devastating Northern California wildfires,” John R. Simon, interim chief executive of PG&E Corporation, said in a statement announcing the filing. “To be clear, we have heard the calls for change and we are determined to take action throughout this process to build the energy system our customers want and deserve.”

The California Public Utilities Commission, which regulates PG&E and the state’s other investor-owned utilities, is reviewing possible changes to the utility that include selling part of the company or turning it into a government-run operation.