Portland IT firm Tilson sues former client for $200M in unpaid bills amid Chapter 11 restructuring
File Photo / Renee Cordes
Tilson, a telecommuncations firm with a national footprint, is headquartered on Portland's East End.
About two months after filing for Chapter 11 bankruptcy protection, Portland-based IT firm Tilson is suing its former largest client for alleged breach of contract over more than $200 million in unpaid bills.
The company, a developer of fiber and wireless networks, has filed the suit against Gigapower, a Dallas-based joint venture between telecoms giant AT&T Inc. (NYSE: T) and New York-based investment company BlackRock Inc. (NYSE: BLK).
The lawsuit, filed in Texas Business Court, concerns a Tilson contract with Gigapower to build fiber networks in Nevada and Arizona.
Tilson is asking the court to find that Gigapower breached the contract and should compensate the company for termination charges, underpayments and missed payments.
“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's CEO, in a statement on Thursday. “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,” he added. “We will not rest until Gigapower fulfills its obligations."
Gigapower denies the allegations.
“Gigapower did not breach our contract with Tilson," the company said in a statement emailed to Mainebiz. "It is unfortunate that we have arrived at this point and [we] will vigorously defend ourselves in court. Until that process is complete, we will refrain from saying anything more."
Tilson's allegations
Tilson alleges in the complaint that it spent hundreds of millions to deliver the fiber networks, and that Gigapower delayed and withheld payments to try to force Tilson to renegotiate rates. This caused Tilson over $100 million in negative cash flow, the complaint alleges.
It further alleges that in 2025, as Tilson was poised to begin generating cash on its substantial investment in the project, Gigapower continued to withhold payment in an attempt to coerce Tilson into accepting new contract terms, including lower payments and a reduced scope of work.
When Tilson refused, Gigapower terminated the agreement “for convenience,” according to Tilson. It contends that the sudden and abrupt loss of the contract and Gigapower’s ongoing refusal to pay resulted in Tilson filing for Chapter 11 bankruptcy protection. The company has also hired an investment bank to sell the business.
The next hearing in Tilson's bankruptcy case is Thursday, Aug. 21.
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