From LNG World News, January 21:
McDermott files for Chapter 11 bankruptcy to erase $4.6 bln debt
Energy industry contractor McDermott International has filed for Chapter 11 bankruptcy as it looks to eliminate over $4.6 billion of debt.
The company said on Tuesday it has the support of more than two-thirds of all its funded debt creditors for a restructuring transaction that will equitize nearly all its funded debt.
The restructuring transaction will be implemented through a prepackaged Chapter 11 process that will be financed by a debtor-in-possession (DIP) financing facility of $2.81 billion.
Subject to court approval, McDermott expects the DIP financing, combined with cash generated by McDermott, to enable it to stabilize its cash flows, continue operating in the normal course and fulfill its commitments to key stakeholders, including customers, suppliers, joint-venture partners, business partners and employees.
The company also has secured committed exit financing of over $2.4 billion in letter of credit facility capacity and will emerge from Chapter 11 with approximately $500 million in funded debt.
McDermott said the restructuring transaction will strengthen its balance sheet, normalize its trade debt and position the company for long-term growth.
All of McDermott’s businesses are expected to continue to operate as normal for the duration of the restructuring....MORE
