Published: Mon, January 14, 2019
Economy | By

PG&E stock nosedives after it says it will file for bankruptcy

PG&E stock nosedives after it says it will file for bankruptcy

Reuters reported over the weekend that PG&E is in talks with investment banks about a multimillion-dollar bankruptcy financing package.

Geisha Williams is stepping down as the CEO of PG&E Corp., the largest utility in the USA, while potential liability over recent California wildfires drives the company into bankruptcy.

PG&E said in a news release it's given the required 15-day advance notice that it plans to file for Chapter 11 bankruptcy protection.

John Simon, PG&E's executive vice president and general counsel, will serve as interim CEO as the board searches for a new leader.

The cause of the Camp Fire is still under investigation, according to state fire officials. Chief Executive Officer Geisha Williams is leaving as California's largest utility owner nears potential bankruptcy.

"While we are making progress as a company in safety and other areas, the Board recognizes the tremendous challenges PG&E continues to face", said Richard Kelly, chair of PG&E's board.

PG&E said they do not expect the move to effect electric or natural gas service for its customers as a result of the proceedings.

The company will file for bankruptcy around January 29, giving its employees a 15-day notice in line with California law, Reuters reports.

Pacific Gas and Electric said last month it determined weather conditions were no longer unsafe enough to warrant a massive power shut off on November 8 - a decision that came as a massive fire was tearing through a Northern California town.

Williams was CEO for less than two years, but she had been with PG&E since 2007.

Support for PG&E's management eroded even further in December when state regulators accused the utility of falsifying records related to locating and marking underground gas lines from 2012 through 2017 - years in which the company was trying to convince the public that it had cleaned up its act after a 2010 pipeline blast that killed eight in San Bruno, California. The wildfire caused 86 deaths and destroyed 14,000 homes, along with more than 500 businesses and 4,300 other buildings.

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