Whitefish Energy Calls On Arc American To Withdraw Its Demands So That PREPA Payments Can Proceed For Electrical Contractors

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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to release payment to Whitefish Energy for the benefit of Whitefish Energy and its subcontractors, until the letter is rescinded.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
[email protected]

SOURCE Whitefish Energy Holdings, LLC