PG&E plans bankruptcy filing, CEO to exit as fire costs rise
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PG&E Corp. said it will file for bankruptcy in California after the cost of wildfires left it with potential liabilities of $30 billion or more, gutting its share price and prompting the departure of its chief executive officer.
The San Francisco-based company said it will file under Chapter 11 of the bankruptcy code by Jan. 29 after giving the required 15-day notice to its employees, according to a filing at the Securities and Exchange Commission on Monday. On Sunday, the company started searching for a new leader after Geisha Williams, 57, quit as CEO. General counsel John Simon will take the helm in the meantime. The departure of Williams, who took over as CEO in March 2017, follows a catastrophic three months for PG&E.
The company has seen two-thirds of its market value wiped out since November’s Camp Fire — the deadliest wildfire in California’s history. Its debt has been downgraded to junk and state regulators have called for a management shakeup. Investigators have been probing whether the power giant’s equipment ignited the fire, along with its potential liability for blazes that devastated Northern California’s wine country in 2017 — costs that “could exceed $30 billion,” according to the filing.
That would dwarf the $1.5 billion in cash and cash equivalents on hand as of Friday. The board concluded that a Chapter 11 reorganization “is ultimately the only viable option to restore PG&E’s financial stability,” according to the filing.
January 14, 2019 at 11:43 AM #12181Ohio BarbarianModerator
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In a just society, there would be no such easy out for PG&E. The people who made the decisions to neglect the power lines would be imprisoned, the corporate assets seized, and the utility taken over by the State of California.
In fact, I would go further. There should be no privately owned utilities. Period. What else do you expect from a social-ist?
Never let your morals stop you from doing the right thing.--Isaac Asimov
The United States is also a one-party state but, with typical American extravagance, they have two of them.--Julius Nyerere
January 14, 2019 at 11:47 AM #12183mrdmkParticipant
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Damm! Forgot to call my stockbroker to run a short.
In seriousness, the financial market saw this coming a long time ago.
If you cannot dazzle them with brilliance, baffle them with bullshit WC FieldsWarning DO NOT CLICK HERE!
January 17, 2019 at 12:21 AM #13244Cold Mountain TrailParticipant
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Geisha Williams, as it happens, is from a Cuban refugee family that emigrated in the mid-60s when “Geisha Jimenez” was 5. (Wonder who named her…). The family was political (= v. Castro).
She’s the first Latina ceo of a Fortune 500 company, now “bankrupt” (lol) to avoid paying for the fires it caused.
So, Latina women can now be heads of great big companies and run them just as dirty as men. Victory!! What is there left for ‘women’ to achieve???
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