McDermott International 2020 Bankruptcy Filing
| McDermott International, Inc., et al., Debtors. | |
|---|---|
| Court | Bankruptcy Court for the Southern District of Texas |
| Full case name | McDermott International, Inc., et al., Debtors. |
| Decided | March 12, 2020[1] |
| Court membership | |
| Judge sitting | David R. Jones |
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]
Bankruptcy filing
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]
References
- ^ "McDermott International Emerges from Chapter 11". U.S. Securities and Exchange Commission. March 13, 2020. Retrieved May 27, 2025.
- ^ McDermott International, Inc. Company Profile (Report). MarketLine. October 10, 2024. Retrieved June 14, 2025.
{{cite report}}: CS1 maint: url-status (link) - ^ Chapa, Sergio (January 21, 2020). "Houston-based McDermott confirms oilfield service company will file for bankruptcy". Houston Chronicle. Retrieved May 23, 2025.
- ^ "Kirkland, Jackson Walker, Ex-Judge Beat Bankruptcy Romance Suit". Bloomberg Law. August 16, 2024. Retrieved June 14, 2025.
The company was represented in its bankruptcy by Kirkland and Jackson Walker…
- ^ "Confirmation of McDermott International chapter 11 plan". Davis Polk & Wardwell LLP. March 12, 2020. Retrieved June 14, 2025.
- ^ "McDermott International, Inc. Announces Confirmation of Plan of Reorganization". PR Newswire. December 17, 2015. Retrieved June 14, 2025.
Under the terms of the Plan, McDermott will complete a comprehensive restructuring transaction to de‐lever its balance sheet…
{{cite news}}: CS1 maint: url-status (link) - ^ Chazan, Guy (June 9, 2024). "The US bankruptcy scandal playing out in a Texas border town". Financial Times. Retrieved May 24, 2025.
- ^ (U.S. Bankruptcy Court, Southern District of Texas August 14, 2020), Text.
- ^ Scurria, Andrew (October 15, 2023). "Houston Bankruptcy Judge David Jones Resigns Under Misconduct Investigation". The Wall Street Journal. Retrieved May 25, 2025.