McDermott comes out of bankruptcy, closes sale of Lummus Technology
McDermott International said that it has wrapped up its restructuring process, emerging from Chapter 11 bankruptcy with $2.4 billion in letter of credit capacity and funded debt of $544 million.
The energy industry services provider said that it had closed the sale of Lummus Technology to a joint partnership between Haldia Petrochemicals of The Chatterjee Group and Rhône Capital having secured all the necessary regulatory approvals and in accordance with its plan of reorganization.
Lummus Technology is a licensor of proprietary petrochemicals, gasification, refining, and gas processing technologies, and also a supplier of proprietary catalysts and related engineering.
McDermott said that the proceeds from the divestiture of Lummus Technology will fully repay the debtor-in-possession financing and also fund emergence costs besides giving cash to the balance sheet for long-term liquidity.
David Dickson – McDermott President and CEO said: “We are pleased to have completed this process so swiftly thanks to the dedication of our employees and the support of our new owners, customers, suppliers and partners.
“We will continue executing on our significant backlog, with a new capital structure to match and support the strength of our operating business, and we emerge well-positioned for long-term growth and success, even amid this period of global uncertainty. We look forward to continued delivery on customer projects. Finally, we congratulate our Lummus colleagues, and look forward to continuing our working partnership with Lummus as we move into the future.”