Activist Insight Quotes Andrew Freedman and Adam Friedman on Proxy Contest and Bankruptcy Concerns at PG&E

Co-Head of Olshan’s Shareholder Activism Practice Andrew Freedman and Olshan Bankruptcy partner Adam Friedman were quoted recently in a March 2019 Activist Insight article on BlueMountain Capital Management’s bid to replace all 13 of Pacific Gas & Electric’s (PG&E) board members, a response to the latter’s preparation for Chapter 11 proceedings. On BlueMountain’s campaign at PG&E, which many regard as a reaction to PG&E’s debt crisis and management’s solution to it, Mr. Freedman asserted, “It’s not surprising to see this level of angst and this rush to change the board as retribution for what BlueMountain perceives as a blatant disregard of the clear wishes of a significant number of shareholders.” While the results of declaring Chapter 11 bankruptcy would be uncertain for PG&E, Mr. Friedman reminds of the potential drawbacks: “You have a lot more constituencies in a bankruptcy case than would exist outside of bankruptcy. You have creditors’ committees, potentially several additional ad hoc committees, you have shareholders’ committees, amongst other stakeholders.”