CEO of PG&E Corp, Geisha Williams has stepped down from the post. The pressure from potentially crushing liabilities has hard-pressed the company to the financial edge to make it brace for liquidation preparations.
Williams joined the company in March 2017 and after the exit, she will be replaced by John Simon on temporary basis. Williams has also quit from the boards of both PG&E, Electric Co. and Pacific Gas.
According to PG&E Chairman Richard Kelly, while the company is making growth in safety and other areas, the board has recognized the challenges of PG&E it is facing. He added that the company has the right interim leader. PG&E has been highlighted from the November Campfire that initiated in the mountain community of Paradise in California and spread to the town. The incident killed 86 people. This was the most deadly fire in state history.
The incident has made the company to face extensive legal process and government investigations including the liabilities that might reach $30 billion. The company is being pressurized by the California Public Utilities Commission for making the operational changes. The company is expected to soon disclose the huge financial charge allied to the liabilities from the November blaze. PG&E carries a heavy debt load of $18 billion.
The company stated in November that in excess of the insurance coverage, it might face significant liability if the equipment was detected to be responsible for the Campfire in Northern California. While working through the court proceedings, company can continue its operations by negotiating the debtor-in-possession loans often provided by the existing lenders if the company is serious about its bankruptcy protection. According to the people who are familiar with the discussions, the bankruptcy financing of the company could total around $5 billion. The exact figure is still not clear and it might be more than the expected numbers.