Mammoth Energy slugs it out with FEMA over unpaid Puerto Rico work

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FEMA is fighting Mammoth Energy’s efforts to be paid the $379 million it says the government owes over the company’s power restoration work following the 2017 Hurricane Maria which devastated Puerto Rico.

In an SEC filing this week, Mammoth provided an update on its battle with the government over the lack of payments. The company stated that as of March 31, the Puerto Rico Power Authority still owed it approximately $227 million for services performed excluding $163.2 million of interest charged on the delinquent balances.

On March 29, 2023, Mammoth subsidiary Cobra filed a notice of appeal with the Civilian Board of Contract Appeals related to the certified claim submitted in January 2023. On April 25, 2023, FEMA filed a motion to dismiss Cobra’s appeal alleging lack of jurisdiction.

Mammoth still contends that all amounts charged to PREPA, the power authority were in accordance with the terms of the contracts.