SAN JUAN, Puerto Rico,
Nov. 22, 2017 /PRNewswire/
-- Whitefish Energy today issued the following statement and
called on Arc American, Inc. to withdraw its letter to the Puerto
Rico Electric Power Authority (PREPA), which is blocking PREPA from
making payment to Whitefish Energy, and in turn, all of its
subcontractors that have helped restore electricity on the island
of Puerto Rico, post Hurricane
Maria:
The self-serving action taken by Arc American, Inc. impacts
every subcontractor that worked with Whitefish Energy to restore
the electrical grid in Puerto
Rico, and more importantly, the people of Puerto Rico.
Whitefish Energy and all of our subcontractors are extremely
frustrated by PREPA's slow payment of invoices. Last
Thursday, Nov. 16, Arc American,
Inc., a subcontractor working under the Whitefish Energy contract,
issued a letter to PREPA demanding to be paid directly rather than
pay Whitefish Energy. Whitefish Energy's subcontract with Arc
American contains a typical construction industry "pay when paid"
provision, which provides that Arc American will receive payments
once Whitefish Energy receives payments from PREPA for Arc
American's services. After the letter questioned whether
Whitefish Energy complied with the "pay when paid" requirements,
Whitefish Energy immediately provided both Arc American and PREPA
with supporting documentation (including evidence of wire
transfers) showing that Whitefish Energy promptly paid Arc American
once it received payment from PREPA for Arc American's services
(and in some instances paid Arc American in advance of receiving
payment from PREPA) and that any payment delays were a result of
PREPA's delayed payments to Whitefish Energy.
Although Arc American's letter was factually and legally
inaccurate, falsely claiming that amounts were "due and owing"
under the subcontract, PREPA refused to release payment to
Whitefish Energy for the benefit of Whitefish Energy and its
subcontractors, until the letter is rescinded. This issue,
combined with prior payment delays by PREPA, led to the need for
the suspension of work under the contract. Whitefish was left
with no choice but to seek relief from the courts. However,
Whitefish Energy remains hopeful that Arc American will withdraw
its letter so that payments can be made to Whitefish Energy and its
other subcontractors, and equally critically, so that work can
resume.
Media Contact:
Chris Chiames
Chris.Chiames@ldwwgroup.com
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SOURCE Whitefish Energy Holdings, LLC