PG&E Is Near a Deal With Hedge Funds on CEO, Board Overhaul
- Bankrupt utility agrees to hire TVA’s Bill Johnson as CEO
- Deal would have 11 new directors nominated to the board
Photographer: Justin Sullivan/Getty Images
PG&E Corp., the bankrupt California power giant facing $30 billion in wildfire liabilities, is nearing a deal with a group of investors that includes naming Bill Johnson as chief executive officer and overhauling its board, according to people familiar with the matter.
PG&E is close to an agreement with the group -- consisting of Knighthead Capital Management, Redwood Capital Management and Abrams Capital Management -- to hire Johnson, the outgoing CEO of the federally operated power agency Tennessee Valley Authority, said the people, who asked not to be identified because the matter is private. The deal, which would also keep three current directors and nominate 10 others for the board, could be announced as soon as Wednesday, the people said.