Oklahoma City’s Mammoth Energy Services won’t learn perhaps until next month whether a judge will sign off on a multi-million dollar settlement of unpaid work it did in restoring electrical power to Puerto Rico following the 2017 Hurricane Maria.
Mammoth has been in a lengthy legal fight over the unpaid hundreds of millions of dollars with the government of Puerto Rico. The Puerto Rico Electric Power Authority had made agreements with Mammoth Energy subsidiary Cobra but PREPA later filed for bankruptcy. A filing with the Securities and Exchange Commission by Mammoth Energy indicating PREPA’s ability to meet its payment obligations under the agreements “is largely dependent upon funding from FEMA or other sources.”
Since 2019, Mammoth’s Coba has been in federal court attempting to recover the money it is owed for large-scale recovery of power following the hurricane. The filing stated that PREPA is currently holding nearly $18.4 million Withheld FEMA funds received from FEMA.
It was last month when Cobra entered into a release and settlement agreement with PREPA and FOMB to settle all outstanding matters.
“Under the terms of the Settlement Agreement, Cobra will have an allowed administrative expense claim against PREPA of $170.0 million, plus the $18.4 million in the Withheld FEMA Funds,” stated the filing with SEC.
However, per the SEC filing, the settlement agreement remains subject to approval by the Title III Court which is expected to hear the motion at the next omnibus hearing to be held September 18 of this year.
“The Company cannot provide any assurances that the court approval will be obtained on the indicated time frame or at all,” according to the filing.