PG&E Corp. shareholder BlueMountain Capital Management LLC said yesterday that it is preparing a challenge to the embattled utility owner’s board, arguing its plan to file for bankruptcy in the wake of catastrophic wildfires in California is harming investors, Reuters reported. The hedge fund, which owns about 2 percent of PG&E, said it is trying to rally support from other shareholders to replace all 10 of the company’s board members at this year’s annual meeting expected in May. BlueMountain’s chances of success are remote, given that PG&E has said its bankruptcy filing may come as early Jan. 29. However, the maneuvering could end up giving BlueMountain a bigger role in any bankruptcy negotiations. “As we noted in our letter today, shareholders retain their corporate governance rights in bankruptcy,” a BlueMountain spokesman said. The hedge fund and other shareholders could potentially be in line to sit on a so-called equity committee that a bankruptcy judge would be empowered to appoint as part of PG&E’s court proceedings.
