McDermott's Chapter 11 Plan, Lummus Sale Gets Court Approval

McDermott's Chapter 11 Plan, Lummus Sale Gets Court Approval
The company will complete a restructuring transaction that will eliminate over $4.6 billion of debt.

The U.S. Bankruptcy Court has confirmed McDermott International Inc.’s plan of reorganization and approved the sale of Lummus Technology to a partnership between The Chatterjee Group and Rhône Capital.

"With the support of our creditors, employees, customers and suppliers, we have been able to confirm our Plan of Reorganization less than two months after we initially filed for Chapter 11," said David Dickson, President and Chief Executive Officer.

"This is a significant achievement and allows us to emerge in the near-term as a stronger, more competitive player, with a sustainable capital structure that matches the strength of our operating business."

McDermott will complete a restructuring transaction to de-lever its balance sheet; it will effectively eliminate over $4.6 billion of debt. Proceeds from the sale of Lummus Technology are expected to repay McDermott's DIP financing in full, as well as fund emergence costs and provide cash to the balance sheet for long-term liquidity.

McDermott provides technology, engineering and construction solutions to the energy industry. Operating in over 54 countries, McDermott's locally focused and globally integrated resources include more than 42,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world.

To contact the author, email bertie.taylor@rigzone.com.



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jim  |  May 07, 2020
Are shareholders completely lost in this chapter 11 plan?
TIMOTHY MARKS  |  March 17, 2020
This could have been done without leaving the shareholders with terrific losses. Shame on this company