U.S. engineering and construction services company McDermott International has completed its restructuring process by shedding nearly all of the company’s $4.6 billion of funded debt.
McDermott said on Tuesday that it emerges from bankruptcy with $2.4 billion in letter of credit capacity and $544 million of funded debt.
Exiting bankruptcy, which the company filed for back in late January 2020, was enabled through the $2.7 billion sale of Lummus technology to a joint partnership between Haldia Petrochemicals and Rhône Capital.
According to McDermott, the 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.
It is worth reminding that the U.S. Bankruptcy Court for the Southern District of Texas confirmed McDermott’s plan of reorganization and approved the sale of Lummus Technology in mid-March.
David Dickson, president and CEO of McDermott, said: “We are pleased to have completed this process so swiftly thanks to the dedication of our employees and the support of our new owners, customers, suppliers, and partners.
“We will continue executing on our significant backlog, with a new capital structure to match and support the strength of our operating business, and we emerge well-positioned for long-term growth and success, even amid this period of global uncertainty.
“We look forward to continued delivery on customer projects. Finally, we congratulate our Lummus colleagues, and look forward to continuing our working partnership with Lummus as we move into the future”.
New board of directors
McDermott also said on Tuesday that it emerged from the restructuring with a newly constituted board of directors, which has assumed its responsibilities effective immediately.
The board members include CEO David Dickson, lead director Nils Larsen, Craig Broderick, Barbara Duganier, Alan Hirshberg, Alan Hirshberg, Lee McIntire, and Paul Soldatos.