The Idaho-based company ran into trouble, defaulted on its loans and stopped working on the plants. Because of its original contract with Raytheon, the New York-based Sithe stated that Raytheon is obligated to finance the completion of the plants and filed suit in New York State against Raytheon. Raytheon agreed to complete the work, but because it got out of construction by selling off that unit, it hired Duke/Flour Daniel to do the job.

Reportedly, Raytheon made similar guarantees on 12 other projects that are now being overseen by WGI. If WGI goes bankrupt, it is unclear what kind of charge Raytheon would face.

Meanwhile, WGI has sued Raytheon for fraud, claiming that Raytheon did not adequately inform WGI of the costs of completing the plants. "We publicly deny these charges," David Polk, spokesperson for Raytheon, tells GlobeSt.com. "We feel that their suit is without merit. We feel that they are doomed to fail."