McDermott International is a privately held company with over 30,000 employees and operating in over 54 countries. It specializes in engineering, procurement, construction, and installation (EPCI) services for the energy industry.[2]
On January 21, 2020, McDermott International and its affiliated debtors filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas.[3] The company was represented by the law firms of Jackson Walker and Kirkland and Ellis.[4]
Restructuring plan
A cornerstone of this restructuring was the approval and subsequent sale of McDermott's Lummus Technology business. This segment was sold to a joint partnership between The Chatterjee Group and Rhône Group for a base purchase price of $2.725 billion.[5] The proceeds from this divestment were earmarked to fully repay the debtor-in-possession financing, cover the costs associated with emerging from bankruptcy, and provide crucial cash liquidity for the company's long-term operations.
Upon its emergence, McDermott had eliminated over $4.6 billion of debt and boasted a strengthened liquidity position, with more cash on hand than debt, $2.4 billion in letter of credit capacity, and $544 million of funded debt.[6]
Aftermath
In October 2023, the then presiding judge, David R. Jones, was accused of concealing a romantic relationship with Elizabeth Freeman, a Jackson Walker attorney.[7] Elizabeth Freeman had served as counsel on behalf of McDermott during the bankruptcy proceeding.[8] Judge Jones subsequently resigned as a judge. [9]
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