IN THE UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF PUERTO RICO

 

POWER CONSTRUCTORS, INC.’S MOTION FOR ALLOWANCE AND 

PAYMENT OF ADMINISTRATIVE EXPENSE CLAIMS IN THE TOTAL SUM 

OF $224,828.12

TO THE HONORABLE LAURA TAYLOR SWAIN,

UNITED STATES DISTRICT JUDGE:

COMES NOW, Power Constructors, Inc. (“POWER” or “Contractor”), 

represented by the undersigned counsel, and very respectfully avers and prays as 

follows:

PRELIMINARY STATEMENT AND FACTUAL BACKGROUND

1. On July 2nd, 2017, the Puerto Rico Electric Power Authority (“PREPA” or 

the “Debtor”) filed a debt adjustment case under Title III of the Puerto Rico Oversight, 

Management, and Economic Stability Act (“PROMESA”) in the U.S. District Court for 

the District of Puerto Rico. (The “Title III Case”) 

In re:

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO 

RICO,

 as representative of

THE COMMONWEALTH OF PUERTO RICO, et 

al.,

Debtors 1

 PROMESA

 Title III 

 NO. 17 BK 3283-LTS

 (Jointly Administered)

 This filing relates to PREPA

1 The Debtors in these Title III Cases, along with each Debtor’s respective Title III case number and the last four 

(4) digits of each Debtor’s federal tax identification number, as applicable, are the (i) Commonwealth of Puerto 

Rico (Bankruptcy Case No. 17 BK 3283-LTS) (Last Four Digits of Federal Tax ID: 3481); (ii) Puerto Rico Sales 

Tax Financing Corporation (“COFINA”) (Bankruptcy Case No. 17 BK 3284-LTS) (Last Four Digits of Federal 

Tax ID: 8474); (iii) Puerto Rico Highways and Transportation Authority (“HTA”) (Bankruptcy Case No. 17 BK 

3567- LTS) (Last Four Digits of Federal Tax ID: 3808); (iv) Employees Retirement System of the Government of 

the Commonwealth of Puerto Rico (“ERS”) (Bankruptcy Case No. 17 BK 3566-LTS) (Last Four Digits of Federal 

Tax ID: 9686); and (v) Puerto Rico Electric Power Authority (“PREPA”) (Bankruptcy Case No. 17 BK 4780-LTS) 

(Last Four Digits of Federal Tax ID: 3747) (Title III case numbers are listed as Bankruptcy Case numbers due to 

software limitations). 

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Estimated Hearing Date: To be determined by the Court

Objection Deadline: To be determined by the Court

2. In order to comply with its duties as a debtor in possession and to 

maximize the value of its assets, PREPA proceeded to enter into a professional services 

contract with POWER to conduct an analytical study to help Puerto Rico obtain the 

most efficient, sustainable, and resilient power generation mix. Said contract is entitled 

Puerto Rico Electric Power Authority Professional Services Contract 2019-P00092, and 

was executed post-petition by the parties on April 12, 2019. (A copy of the contract is 

attached hereto as Exhibit A).

3. After rendering the services as contractually obligated, POWER 

proceeded to submit five (5) invoices totaling $224,828.12, which have not been paid 

by PREPA. The unpaid invoices are the following:

a. Invoice #308379 dated May 14, 2019 in the amount of $405.71, 

attached hereto as Exhibit B;

b. Invoice #308914 dated June 21, 2019 in the amount of 

$64,383.52, attached hereto as Exhibit C;

c. Invoice #308918 dated June 21, 2019 in the amount of $5,229.63, 

attached hereto as Exhibit D;

d. Invoice #308204 dated August 30, 2019 in the amount of 

$5,871.12, attached hereto as Exhibit E; and

e. Invoice #316280r1 dated October 4, 2019 in the amount of 

$148,938.85, attached hereto as Exhibit F.

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Estimated Hearing Date: To be determined by the Court

Objection Deadline: To be determined by the Court

4. POWER has made multiple attempts to collect the aforementioned 

invoices and have received belated and inconsequential responses from PREPA.

DISCUSSION

5. Bankruptcy Code section 503(b)(1)(A) provides that “[a]fter notice and a 

hearing, there shall be allowed administrative expenses . . . including . . . the actual, 

necessary costs and expenses of preserving the estate.” Generally, a request for 

payment of an administrative expense pursuant to Bankruptcy Code section 503(a) 

may qualify if (i) the right to payment arose from a post-petition transaction with the 

debtor estate (rather than from a prepetition transaction with the debtor) and (ii) the 

consideration supporting the right to payment was beneficial to the estate of the 

debtor. See In re Hemingway Transp., Inc., 954 F.2d 1, 5 (1st Cir. 1991). 

6. Nothing prohibits immediate payment of an allowed administrative 

expense, either, as the timing of payment is within a court’s discretion. See In re HQ 

Global Holdings, Inc., 282 B.R. 169, 173 (Bankr. D. Del. 2002); In re Rare Coin Galleries, 

Inc., 72 B.R. 415, 417 (Bankr. D. Mass. 1987) (“In general, the timing of the payment of 

ordinary administrative claims is in the discretion of the Court.”). Courts look to a 

variety of factors in determining whether to order immediate payment, including, but 

not limited to, prejudice to the debtor, hardship to the claimant, potential detriment 

to other creditors, and the length and expense of the case’s administration. See id.; see 

also In re Garden Ridge Corp., 323 B.R. 136, 143 (Bankr. D. Del. 2005). 

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Estimated Hearing Date: To be determined by the Court

Objection Deadline: To be determined by the Court

7. It is abundantly clear that POWER and the unpaid invoices totaling 

$224,828.12 qualify for administrate expense priority. The Contract was not only 

entered post-petition, but most importantly PREPA, as a debtor in possession, 

stipulated in the contract that all the invoices shall be considered administrative 

expenses under Sections 503 and 507(a)(2) of the Bankruptcy Code. See Section 

III(k) at page 11 of the Contract attached hereto Exhibit A.

WHEREFORE, it is respectfully requested that this Court allow POWER’s claim 

in the aggregate amount of $224,828.12 as an administrative expense claim and orders 

PREPA to immediately pay the same, which any other appropriate relief.

CERTIFICATE OF SERVICE

I hereby certify that, on August 4, 2023, I caused the preceding document to be 

electronically filed with the Clerk of the Court using the CM/ECF system, which will 

send notification of such filing to all CM/ECF participants in this case.

RESPECTFULLY SUBMITTED.

In San Juan, Puerto Rico, this 4th day of August, 2023.

s/ Alexis Fuentes-Hernández, Esq. 

Alexis Fuentes-Hernández, Esq.

USDC-PR 217201

FUENTES LAW OFFICES, LLC

P.O. Box 9022726

San Juan, PR 00902-2726

Tel.(787) 722-5215, 5216

Fax. (787) 483-6048

E-Mail: fuenteslaw@icloud.com

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