In a high-stakes move reminiscent of a tightrope walker balancing precariously over a chasm, Texas’s energy powerhouse, McDermott International, is appealing to a Texas bankruptcy judge. The mission? To stretch Chapter 15 recognition to its Dutch and British restructuring processes, a critical step in its debt renovation blueprint.
McDermott Chapter 15 Extension Request : The Pivotal September Announcement
Just a month ago, the air was thick with anticipation when McDermott unveiled its ace card: a restructuring deal. This collaboration with pivotal stakeholders was designed to extend its debt maturities by a solid three years, infuse a cool $250 million in fresh capital, and wipe off a staggering $1 billion arbitration award.
It was a statement that echoed in financial corridors. By September, the company made its intent clear: court nods from the U.K. and the Netherlands were on the horizon. With an impressive backing of over 75% of its secured creditors, things seemed on track.
McDermott Chapter 15 Extension Request : Unfolding Courtroom Drama
Barely a month ago, McDermott initiated restructuring proceedings for CB&I U.K. Ltd., a key affiliate, under the stringent U.K. Companies Act. Simultaneously, its allies McDermott International Holdings and Lealand Finance Co. sought protection under the Dutch Act on Confirmation of Extrajudicial Plans. The countdown has begun, with the British court’s hearing slated for late November and the Dutch court’s ruling expected by early December.
