PG&E shareholder BlueMountain says bankruptcy unnecessary

  • PG&E shareholder BlueMountain Capital Management on Thursday said the U.S. power company's decision to file for bankruptcy was unnecessary, arguing that there was evidence the company was solvent.
  • Earlier this week, the biggest U.S. power utility by customers said it was preparing for Chapter 11 bankruptcy protection as soon as this month.
  • Shares of the utility, which have plummeted more than 52 percent this week, were up 3.8 percent before the bell.
The logo for Pacific Gas & Electric Co. appears above a trading post on the floor of the New York Stock Exchange, Monday, Jan. 14, 2019.
Richard Drew | AP
The logo for Pacific Gas & Electric Co. appears above a trading post on the floor of the New York Stock Exchange, Monday, Jan. 14, 2019.

PG&E shareholder BlueMountain Capital Management on Thursday said the U.S. power company's decision to file for bankruptcy was unnecessary, arguing that there was evidence the company was solvent.

"At the very least, the board should wait to take its case to shareholders at the upcoming annual meeting," the asset manager said in a letter to PG&E's board.

PG&E's annual shareholders meeting is scheduled to be held on May 22.

Earlier this week, the biggest U.S. power utility by customers said it was preparing for Chapter 11 bankruptcy protection as soon as this month amid pressure from potentially crushing liabilities linked to California's catastrophic wildfires in 2017 and 2018.

The asset manager said the utility should consider asset sales or alternative financing, if needed.

BlueMountain Capital Management held a 0.8 percent stake in PG&E, as of Sept. 30, 2018, according to Eikon data from Refinitiv.

Shares of the utility, which have plummeted more than 52 percent this week, were up 3.8 percent before the bell.