McDermott Takes Action to De-Lever its Balance Sheet and Immediately Position Company for Long-Term Growth

 

  • Financial restructuring transaction supported by more than two-thirds of all funded debt creditors
  • Transaction to equitize nearly all funded debt; company to emerge with committed letter of credit financing and only $500 million of funded debt
  • Restructuring to be implemented through prepackaged Chapter 11 process on expedited schedule with the support of $2.81 billion debtor-in-possession financing
  • Customer projects to continue seamlessly; all operations continue in normal course
  • Plan provides that all suppliers will continue to receive payments and be paid in full
  • Enters agreement to sell Lummus Technology to The Chatterjee Group and Rhône Group for $2.725 billion

On March 12, 2020, the U.S. Bankruptcy Court for the Southern District of Texas confirmed McDermott’s Plan of Reorganization and approved the sale of Lummus Technology to a joint partnership between The Chatterjee Group and Rhône Capital (the “Joint Partnership”). Under the terms of the Plan, McDermott will complete a comprehensive restructuring transaction to de-lever its balance sheet and immediately position the Company for long-term growth. The transaction will allow the company to emerge with more cash on hand than debt, eliminating over $4.6 billion of debt.

The company expects to emerge in the second quarter following the receipt of regulatory approval for the sale of Lummus Technology to the Joint Partnership.

Read the full announcement here

On January 21, 2020, McDermott International, Inc. announced that it has the support of more than two-thirds of all its funded debt creditors for a restructuring transaction that will equitize nearly all the company’s funded debt, eliminating over $4.6 billion of debt. McDermott commenced solicitation of votes from its lenders and bondholders in support of a prepackaged Chapter 11 Plan of Reorganization and commenced the prepackaged Chapter 11 filing later in the day, on January 21, 2020 in the U.S. Bankruptcy Court for the Southern District of Texas.
 
Read the full announcement here
 
More information about the restructuring, including access to court documents, can be found by visiting https://cases.primeclerk.com/McDermott or contacting Prime Clerk, the company’s noticing and claims agent at +1 877-426-7705 (for toll-free US domestic calls) and +1 917-994-8380 (for tolled international calls) or McDermottInfo@primeclerk.com.

 

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