News Contact Us

Houston-based McDermott International to soon file for bankruptcy

Author : Pankaj Singh | Published Date : 2020-01-22 

Oilfield service company, McDermott International has recently confirmed plans to file for Chapter 11 bankruptcy. Sources close to the matter cite that McDermott would file a prepackaged restructuring plan at the United States Bankruptcy Court in Houston.

The restructuring plan, which has the backing of two-thirds of its creditors, would enable McDermott to receive over USD 2.8 billion in financing and reduce USD 4.6 billion of debt. As part of this restructuring plan, the company has decided to sell Lummus Technology to Rhône Group and The Chatterjee Group for USD 2.725 billion. However, this deal must be passed by a bankruptcy judge in the auction process.

David Dickson, CEO and President of McDermott, claims that the restructuring plan, which has the complete support from all of the company’s funded creditors involving unsecured bondholders, is a recognition of the company’s fundamentally strong operating business and proven strategy.

The company’s record backlog, most of which have been booked in the previous two years, and an elevated rate of new project awards demonstrates their customers' continued faith in the company’s business, the demand for its skills, and long-term opportunities in future.

As per sources, McDermott's recent announcement puts an end to four months of rumors that the company could file for bankruptcy. Market rumors about McDermott using the services of a restructuring advisory firm had badly impacted the company’s stock prices.

In September, shares of the company were trading USD 6 per share range but have fallen below USD 1 per share. McDermott got a delisting warning from the New York Stock Exchange to take shares back above USD 1 per share threshold.

About McDermott International

Established in 1923, the company offers design, engineering and construction services to LNG & petrochemical plants, as well as offshore natural gas and oil facilities. It has around 32,000 employees across 54 nations and has posted a USD 1.9 billion loss on USD2.1 billion of revenue in its third quarter.

Source Credit - https://www.chron.com/business/energy/article/McDermott-oil-field-company-files-bankruptcy-14991364.php

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

FDA suggests the recall of all Zantac drugs from the market

Published Date: 2020-04-03         Author: Pankaj Singh

America’s federal healthcare agency, the U.S. FDA has recently requested all drug manufacturers to immediately recall all over-the-counter and prescription ranitidine drugs that are commonly sold under the name Zantac from the market.  According to reliable sources, in its ongoing inve... Read More

Skyrora to produce masks and sanitizers for UK amid COVID-19 crisis

Published Date: 2020-03-30         Author: Pankaj Singh

Skyrora, a Scotland based private space company, reportedly announced that it would start manufacturing health equipment for frontline workers in the United Kingdom, answering the call of the UK government as well as the National Health Service to help the country fight the growing spread of the cor... Read More

InterSystems launches a new version of InterSystems IRIS Data platform

Published Date: 2020-03-26         Author: Pankaj Singh

InterSystems, a U.S based software firm that focuses on helping consumers solve crucial interoperability, speed, and scalability problems efficiently, recently revealed its latest version of the InterSystems IRIS™ data solution. Reportedly, this comes as its third major launch of InterSyste... Read More

© 2020 Fractovia. All Rights Reserved