Mammoth Energy Services came out again this week with a demand that Puerto Rico pay the Oklahoma City company hundreds of millions it is owed over its power restoration work following Hurricane Maria in 2017.
In a press release, Mammoth issued the call on the Puerto Rico Electric Power Authority, better known as PREPA, to release $40.4 million in funds from FEMA. It represents only a small part of the estimated $350 million the company is still owed by Puerto Rico.
Mammoth raced to Puerto Rico after the hurricane devastated the country leaving it virtually without electrical power. Mammoth’s wholly-owned subsidiary, Cobra Acquisitions LLC performed the work.
Mammoth has been fighting ever since to get fully paid for its restoration services and said a document dated in May of 2022 indicated the more than $40 million remains available in PREPA’s emergency account for the work. The 13-week cash flow update, including page 9 referencing the $40.4 million in available funds, was published by the Puerto Rico Fiscal Agency and Financial Advisory Authority (“PRFA”) on its website.
As of the date of this news release, PREPA owes Cobra in excess of $350 million, including over $123 million in accrued and unpaid interest, for such restoration work. This account receivable accrues the contractual interest at the rate of over $3.3 million per month. Mammoth continues to vigorously pursue the collection of this severely delinquent account receivable.
“It is inexplicable that PREPA is continuing to breach their contractual obligations, especially when their own financial documents indicate that $40.4 million of cash for work performed by Cobra remains in a PREPA emergency account,” stated Mammoth’s Chief Executive Officer, Arty Straehla.
“Our work in Puerto Rico has stood the test of time, and yet nearly half a decade later, we are still seeking an explanation from PREPA about their ongoing obfuscation.”
He went on to state that the trend sends a chilling message to anyone considering doing business in Puerto Rico, especially during any natural disasters that might occur in the future.
“Furthermore, as the monthly interest on the debt continues to accrue, the real victims here are the people of Puerto Rico who will ultimately get stuck with the tab. Enough is enough, the apparent funds in the PREPA account have been provided by FEMA for payment to Cobra, and it is long past time for PREPA to pay its bills.”
Source: Business Wire