Mammoth comments on PREPA settlement with other contractor

Oklahoma City-based Mammoth Energy Services, locked in disagreement with the Puerto Rico Electric Power Authority over money related to work a Mammoth subsidiary did in Puerto Rico in the aftermath of Hurricane Maria, issued a statement Friday in reaction to news that PREPA had entered into a settlement with another contractor, Whitefish Energy Holdings.

“While it is certainly encouraging PREPA has begun addressing amounts owed to post-bankruptcy creditors, Mammoth’s subsidiary Cobra Acquisitions is owed more than three times the amount owed to Whitefish for our work restoring electricity for the island of Puerto Rico,” Mammoth CEO Arty Straehla said. “It has been nearly five years since Hurricane Maria, and nearly three years since Cobra completed its work, which has stood the test of time during subsequent natural disasters. We are proud of our work, and fully expect to be compensated for our efforts. It is clear the time for talk is over, and the time for action is now.”

Straehla said Mammoth has provided all documentation requested as efforts have continued to sort out the disagreement.

“PREPA is running out of excuses for its refusal to pay, and if they continue to drag their feet, we believe it will further impact their ability to exit from bankruptcy,” he said.

Following Hurricane Maria in September 2017, Mammoth, through Cobra, was awarded an initial $200 million restoration contract. Through five separate amendments to the original contract, the aggregate contract amount was eventually increased to $945 million, the company said in a release. PREPA awarded a second contract of up to $900 million to Cobra in response to a request for proposals, it said.

As of last month, Mammoth, through Cobra, is owed $344 million including $117 million in interest charges, as specified in the contract, on remaining invoices for work Cobra completed, it said.