Tilson Technology Management has filed a lawsuit against Gigapower just a couple of months after the company filed for Chapter 11 bankruptcy.

In a statement last week, Tilson said it's seeking to "recover more than $200 million owed under a contract to build fiber networks in Nevada and Arizona" from Gigapower.

Lawsuit
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Tilson's financial troubles began earlier this year when Gigapower - the company’s largest client, formed out of a joint venture between telecommunications giant AT&T Inc. and BlackRock - terminated nearly all of its construction projects with Tilson, including all construction in Arizona, plus almost all of the remaining construction work in Las Vegas.

Tilson alleges that Gigapower breached the agreed contract between the two parties.

The company wants Gigapower to compensate it for termination charges, underpayments, and missed payments that it claims Gigapower contractually owes.

Tilson adds that Gigapower's actions "hurt" the business and its employees, and caused more than $100 million in negative cash flow.

The fiber network developer said that earlier this year, Gigapower withheld payment in an attempt to coerce Tilson into accepting new contract terms, including lower payments and a reduced scope of work.

After Tilson refused to agree to the conditions, Gigapower terminated the agreement “for convenience.”

This led Tilson to file for Chapter 11 bankruptcy. Since its filing, Tilson said it has been able to secure financing from Bank of America and others, providing critical liquidity to support operations, received court approval to pay its employees, and critical vendors.

“We entered this contract in good faith and followed through on our obligations at every step of the way, and we expect our clients to do the same,” said Darrell Ingram, Tilson CEO.

“We are simply seeking for Gigapower to comply with its contract and pay the money we were promised for the services we delivered. This lawsuit provides a path for Tilson’s creditors, including the many vendors who worked on this project, to be paid. We will not rest until Gigapower fulfills its obligations.”

Founded in 1996, Maine-based Tilson has more than 1,000 employees and serves both the public and private sectors.

Gigapower has denied the allegations set out by Tilson.

"Gigapower did not breach our contract with Tilson," said a Gigapower spokesperson to DCD. "It is unfortunate that we have arrived at this point, and will vigorously defend ourselves in court. Until that process is complete, we will refrain from saying anything more."