(Reuters) – PG&E Corp is near naming a brand new chief govt officer and revamping its board backed by a few of its largest traders, the Wall Road Journal mentioned on Saturday, as the facility utility restructures after submitting for chapter due to potential liabilities from California wildfires.
A PG&E truck carrying an American Flag drives previous PG&E restore vans in Paradise, California, U.S. November 21, 2018. REUTERS/Elijah Nouvelage
Invoice Johnson, who is about to retire as head of the Tennessee Valley Authority in April, is the front-runner to get the job of PG&E’s new CEO, the Journal reported.
PG&E has additionally made provides to 10 new unbiased board candidates and is anticipated to unveil the slate as quickly as subsequent week, saying it has vital shareholder assist, in accordance with the report.
Johnson’s new function, which is also introduced subsequent week, has not but been finalized and different candidates have been nonetheless being interviewed, the newspaper added.
The utility filed for chapter safety in January in anticipation of liabilities from the wildfires, together with the catastrophic 2018 Camp Hearth that killed 85 individuals.
TVA didn’t have an instantaneous remark, whereas PG&E didn’t reply to a request for touch upon Saturday.
A trio of activist traders, that collectively personal practically 10 p.c of PG&E inventory, has been working with the corporate to vary its administration, the Journal reported.
The three hedge funds, Abrams Capital Administration LP, Knighthead Capital Administration LLC and Redwood Capital Administration LLC, mentioned in a submitting on Friday that they had agreed with PG&E to work collectively to nominate a brand new CEO and refresh its board. bit.ly/2HqIxyM
The board slate they’ve helped PG&E assemble is anticipated to incorporate consultants on cyber safety, nuclear safety and restructurings, the Journal mentioned.
PG&E’s earlier CEO, Geisha Williams, stepped down in January after lower than two years on the job.
Final month, the corporate mentioned it anticipated solely 5 of its present 10-strong board to face for reelection at an annual shareholder assembly in Could. It additionally mentioned it anticipated the board to incorporate 11 unbiased administrators by the point of the assembly, with out specifying how large the board would lastly be.
The Journal mentioned the efforts of the three traders are separate from these of one other PG&E investor, BlueMountain Capital Administration, which earlier in March named its personal slate of 13 individuals it hopes to put in as administrators on the embattled energy utility.
Reporting by Ismail Shakil in Bengaluru; Enhancing by Daniel Wallis