(Reuters) – California utility owner PG&E Corp is preparing to name a restructuring chief as it finalizes preparations for a bankruptcy filing expected to come as soon as early Tuesday morning, people familiar with the matter said.
PG&E plans to file for bankruptcy protection in a San Francisco federal court, the sources said, in part to address liabilities it expects to top $30 billion stemming from catastrophic wildfires in the last two years that have killed more than 100 people and destroyed numerous homes.
San - Utility - Owner - Debt - Stages
The San Francisco-based utility owner, which carries debt exceeding $18 billion, is in the final stages of discussions to appoint longtime turnaround specialist James Mesterharm as its chief restructuring officer to help the company navigate bankruptcy proceedings, the sources said.
The company is pressing on with its bankruptcy plan, which it announced earlier this month, even as some of its creditors proposed last-ditch rescue-financing packages to prevent such a move, some of the sources said.
Sources - Company - Developments - Mesterharm - Appointment
The sources asked not to be identified discussing internal company developments and cautioned that Mesterharm’s appointment was still in the process of being finalized Monday evening. A PG&E spokeswoman didn’t immediately respond to a request for comment.
On Monday, the California Public Utilities Commission approved PG&E’s plans to tap up to $6 billion in so-called debtor-in-possession financing to help it operate while under bankruptcy protection.
Mesterharm - Director - Turnaround - Firm - AlixPartners
Mesterharm, a managing director at turnaround and consulting firm AlixPartners LLP, previously served as restructuring chief at Eastman Kodak Co during its bankruptcy proceedings. Other companies he has advised on restructurings include mall owner General Growth Properties and Zenith Electronics. He has advised PG&E in the weeks leading up to...
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