McDermott gets approval for reorganization plan

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

Source: McDermott

McDermott filed for Chapter 11 bankruptcy in late January 2020 to eliminate $4.6 billion of debt.

The company announced the confirmation of its plan of reorganization on Thursday, March 12.

David Dickson, President and Chief Executive Officer of McDermott, said: “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.”

“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.”

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.

As announced on January 21, 2020, subsidiaries of McDermott entered into a share and asset purchase agreement to sell Lummus Technology to the joint partnership, as the “stalking horse bidder,” for a base purchase price of $2.725 billion, subject to higher or otherwise better bids received through a court-supervised auction process.

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.


Spotted a typo? Have something more to add to the story? Maybe a nice photo? Contact our editorial team via email.

Also, if you’re interested in showcasing your company, product, or technology on Offshore Energy Today, please contact us via our advertising form where you can also see our media kit.

Share this article

Follow Offshore Energy Today

Events>

<< Apr 2020 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

Navingo Career Event

The Navingo Career Event is Europe’s biggest career event for the maritime…

read more >

Offshore Technology Conference (OTC) 2020 Postponed

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

OWI APAC 2020

Over the two-day conference, 30 expert speakers will share exclusive insight to help drive well work efficiencies through innovative…

read more >

2020 EXPLORATION AND PRODUCTION STANDARDS CONFERENCE ON OILFIELD EQUIPMENT AND MATERIALS

The development of consensus standards is one of API’s oldest and most successful programs.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply