But, beneath the calm surface of this financial sea, deeper currents swirled.
The Billion-Dollar Shadow: CB&I’s Run-in with Refricar
A looming cloud on McDermott’s horizon is the colossal $1 billion award, a judgment in favor of Refineria de Cartagena SAS (Reficar). This subsidy of Colombia’s state-owned giant, Ecopetrol SA, cast a long shadow. Reficar’s grievance against CB&I entities was sharp: costly delays and spiraling expenses on their Colombian refinery project.
In a bold counter-move, CB&I sought intervention from a New York federal judge in June, challenging the arbitration’s very foundation. The charge was clear: the tribunal had overstepped its boundaries and flouted the rules.
Reficar shot back with a stern allegation last month, implying that McDermott’s restructuring might be a strategy to sidestep the hefty debt. Tensions peaked when the overseeing judge ordered McDermott to defend its U.S. assets against a freeze.
Refricar’s Retort and McDermott’s Silence
In a recent twist, Refricar urged a freeze on McDermott’s assets, highlighting the U.S. bankruptcy courts’ hesitation to recognize foreign proceedings. Dismissing McDermott’s concerns, Refricar argued that, under New York law, an asset freeze wouldn’t upset the bankruptcy’s apple cart.
