PG&E Corp., which filed for bankruptcy protection in January due to wildfire claims, is facing pressure from investors to initiate a management overhaul, Bloomberg News reported March 16, citing regulatory filings.
The hedge funds, including Knighthead Capital Management LLC, Redwood Capital Management LLC and Abrams Capital Management LP, are planning to nominate directors to PG&E's board. The investors, which hold almost 10% of the utility's outstanding shares, are also looking to name their picks for the company's next CEO.
PG&E shareholder BlueMountain Capital Management LLC has nominated its own slate of directors including Jeff Ubben, CEO of ValueAct Capital Management LP.
However, the investor-owned utility is likely to select Bill Johnson, the outgoing chief of power agency Tennessee Valley Authority, the news outlet reported, citing people familiar with the situation. While PG&E has not decided on a definitive list of board directors, it may skip BlueMountain Capital Management's recommendations, the people added.
PG&E and BlueMountain Capital declined to comment on the matter, the newswire noted.