McDermott International Declares Bankruptcy

McDermott International, Inc. and its debtors (collectively, “McDermott”) were involved in the chapter 11 bankruptcy proceedings. In addition, BankruptcyHQ advice an “Ad Hoc Group,” which included prepetition secured term lenders as well as DIP term lenders. 

As a result, McDermott, McDermott and the Ad Hoc Group, prepetition LC lenders, ad hoc bondholder groups, and other parties entered into a comprehensive structuring support agreement (the “RSA”) on the same day. 

McDermott also filed voluntary petitions to obtain relief under chapter 11 of the Bankruptcy Code at the United States Bankruptcy Court, Southern District of Texas, Houston Division.

McDermott’s prepackaged plan for reorganization (the “Plan”) was approved on March 12, 2019. It included an equitization above $4 billion in debt with Ad Hoc Group members receiving pro-rata shares of 94 percent reorganized equity, $500 million in taking back debt and McDermott’s Lummus Technology business being sold to a joint venture for $2.725billion. 

After completing a series of transactions, including the sale, McDermott was reorganized and emerged from bankruptcy on June 30, 2020.

McDermott provides integrated services in the energy sector, including engineering, procurement and construction. McDermott is a global provider of unique technology and services for projects worldwide, including offshore, subsea and power, liquefied gas, and downstream energy. Its clients include large-scale integrated national and international oil and gas corporations and petrochemical and electric power plants.

The finance and corporate teams provided advice on executive pay. The capital markets team provided tax assistance. The entire BankruptcyHQ team is based in New York.

 

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