BlueMountain Capital Challenges PG&E's Bankruptcy Plan

(RTTNews) - BlueMountain Capital Management, LLC, a private diversified alternative asset management firm, sent an open letter to the Board of Directors of PG&E Corporation (PCG) and the Board of Directors of Pacific Gas and Electric Company challenging their plans announced January 14 to file for Chapter 11.

"There is overwhelming evidence that PG&E is solvent. We simply cannot recall a situation where such a valuable company filed for bankruptcy with such blatant questions about the necessity of doing so," BlueMountain said in the letter.

BlueMountain said that there is no urgency to an imminent filing. The Company has ample liquidity to operate its business; the amount of liabilities remains uncertain and contestable; there are meaningful probabilities of offsets from settlements and cost recovery; and any potential liabilities are payable in the future. Hence, at the very least, the Board should wait to take its case to shareholders at the upcoming annual meeting.

BlueMountain said, "The Board should carry out its fiduciary duties, select successors who will, or allow shareholders to choose new directors who will honor their fiduciary duty."