McDermott Exits Bankruptcy With Restructuring and Sale Of Lummus Technology
McDermott International has completed its restructuring process after exiting bankruptcy protection, equitizing almost all its $4.6 billion of funded debt, including $2.4 billion in letter of credit capacity and $544 million of funded debt.
The company completed the sale of Lummus Technology to a joint partnership between Haldia Petrochemicals and Rhône Capital as part of its plans for reorganization. Proceeds from the sale of Lummus Technology will repay the debtor-in-possession financing in full, as well as fund emergence costs and provide cash to the balance sheet for long-term liquidity.
McDermott filed for Chapter 11 bankruptcy protection 5 months ago, which included the sale of Lummus Technology as part of the deal. Market insiders said McDermott was struggling with debt primarily from its $6-billion acquisition of CB&I in 2018.
"We will continue executing on our significant backlog, with a new capital structure to match and support the strength of our operating business,” said McDermott president and CEO David Dickson. “And we emerge well-positioned for long-term growth and success, even amid this period of global uncertainty.”
McDermott also unveiled its newly constituted board of directors, which has assumed its responsibilities, effective immediately.
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