Tuesday, April 7, 2020

McDermott Bankruptcy Filing Imminent -Bloomberg

January 20, 2020

(File photo: McDermott International)

Oilfield services provider McDermott International Inc is preparing to file for bankruptcy as soon as next week, Bloomberg reported on Friday, citing people with knowledge of the matter.

The company did not immediately respond to a request for comment by Reuters.

McDermott is discussing a restructuring plan in which its debt could be converted into equity, with its group of lenders getting the majority of the shares, the report said.

Unsecured creditors would receive less than 10% of the equity along with warrants, according to one of the people cited in the Bloomberg report. A group of lenders led by HPS Investment Partners and Baupost Group LLC are in talks to provide a loan of around $2 billion to keep the company's operations running during bankruptcy, the Wall Street Journal reported in late December.

(Reporting by Sabahatjahan Contractor in Bengaluru Editing by Matthew Lewis)

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