“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.
