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In a significant move for the energy industry, McDermott International, headquartered in Texas, has successfully completed its global restructuring efforts spanning the Netherlands and the U.K. The company's strategic maneuver aims to bolster its financial standing by extending debt maturities and settling arbitration liabilities, marking a pivotal moment in its trajectory.

McDermott Completes Global Restructuring : Restructuring Triumph

McDermott International Inc. announced Tuesday the successful conclusion of its cross-border restructuring, emphasizing the extension of debt maturities by three years and the resolution of arbitration liabilities. This milestone follows the fulfillment of activities outlined in its transaction support agreement, facilitating the extension of letters of credit and term loan facilities while resolving an arbitration award owed to Refineria de Cartagena SAS, also known as Reficar. The completion also signified the cessation of court proceedings in the Netherlands and the U.K., according to McDermott. "We have seamlessly executed the legal processes and transactions outlined in the transaction support agreement," remarked Michael McKelvy, President and CEO of McDermott. "We are poised to forge ahead, ensuring safe and exceptional delivery for our valued customers."

Legal Expertise and Financial Maneuvers

Linklaters LLP, in a statement, disclosed its advisory role to Credit Agricole CIB, a lender to McDermott, during the restructuring process. The transaction, involving loan and credit letter facilities valued at approximately $2.6 billion, also facilitated the discharge of unsecured litigation claims amounting to $2 billion, as stated by the London-based multinational law firm. The restructuring, initiated in September, aimed to reconfigure debt maturities, resolve pending arbitration, and secure new capital. McDermott announced a deal with key stakeholders, garnering support from entities holding over 75% of its funded debt, equity, and letters of credit. The company proceeded to seek court approvals in the U.K. and the Netherlands while pursuing recognition from a U.S. Bankruptcy court.

Legal Proceedings and Milestones

McDermott's efforts culminated in Chapter 15 recognition in the Southern District of Texas, followed by a settlement with Reficar earlier this month, offering approximately $900 million. Linklaters confirmed the plan's sanction by the U.K. court in late February and Dutch courts' confirmation in early March, subsequently recognized by the U.S. bankruptcy court on March 22.

McDermott Completes Global Restructuring : Collaborative Endeavors

Legal counsel was provided by Kirkland & Ellis LLP and NautaDutilh, with Credit Suisse offering financial advisory services and Alvarez & Marsal serving as restructuring adviser. McDermott, a company providing engineering and construction services in the energy sector across 54 countries with 30,000 employees, underscored its commitment to resilience and adaptability in navigating challenging market conditions.