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Mammoth Energy Announces Submission of Certified Claim to the Federal Emergency Management Agency
OKLAHOMA CITY, Jan. 24, 2023 /PRNewswire/ -- Mammoth Energy Services, Inc. (NASDAQ: TUSK) ("Mammoth" or the "Company") today announced that its wholly owned
About this update from Mammoth Energy Services, Inc.
[{"type":"text","content":"OKLAHOMA CITY, Jan. 24, 2023 /PRNewswire/ -- Mammoth Energy Services, Inc. (NASDAQ: TUSK) (\"Mammoth\" or the \"Company\") today announced that its wholly owned subsidiary Cobra Acquisitions LLC (\"Cobra\") has submitted a certified claim for approximately $379 million to the Federal Emergency Management Agency (\"FEMA\") pursuant to the federal Contract Disputes Act.\nIn the aftermath of Hurricane Maria in 2017, Puerto Rico was without electricity, and the entire Island was declared a federal disaster zone. There was an urgent need to restore power to the Island as quickly as possible, but few companies had the ability to mobilize immediately to an island, particularly one that had just been devastated. Additionally, many companies were reticent about contracting with the Puerto Rico Electric Power Authority (\"PREPA\"), which had declared bankruptcy earlier in 2017. Nevertheless, Cobra agreed to mobilize immediately and restore the power grid in Puerto Rico based on assurances from the highest levels of FEMA that it would be paid for its work. Despite having successfully undertaken that Herculean task, and despite spending years attempting to work with FEMA and PREPA to collect this debt, more than five years after Hurricane Maria hit, Cobra still has not been paid over $379 million that it is owed. Cobra is hopeful that FEMA will agree to pay this claim, but Cobra is prepared to exercise its appellate rights, including seeking judicial review, if FEMA refuses to honor its commitment. \nArty Straehla, Chief Executive Officer, commented, \"Despite multiple affirmations of our work by FEMA itself, we remain unpaid for work we completed in Puerto Rico over three years ago. Our team answered FEMA's call for assistance when it was needed, and we deserve to be paid for the work we did.\"\nCobra is represented in this proceeding by Abbe Lowell and Christopher Man from Winston & Strawn LLP.\nMammoth Energy Services, Inc.\nMammoth is an integrated, growth-oriented energy services company focused on the construction and repair of the electric grid for private utilities, public investor-owned utilities and co-operative utilities through its infrastructure services businesses. The Company also provides products and services to enable the exploration and development of North American onshore unconventional oil and natural gas reserves. Mam...