Major Restructuring Plan: Mc Dermott to Sell Lummus Technology

Technology Purchase Major Restructuring Plan: Mc Dermott to Sell Lummus Technology

22.01.2020Editor: Ahlam Rais

Amidst reports of Mc Dermott going bankrupt, the company has plans to sell its Lummus Technology. One of the bidders for the technology is the joint partnership between The Chatterjee Group and Rhône Group which is willing to purchase the technology for 2.725 billion dollars.

Related Companies

McDermott

Maag Pump Systems AG

Donadon SDD Srl

Frewitt fabrique de machines SA

Mc Dermott expects to hold an auction to solicit higher or better bids for the Lummus Technology business.
(Source: Deposit Photos)

Houston/USA – Mc Dermott International has recently announced that it has the support of more than two-thirds of all its funded debt creditors for a restructuring transaction that will equitise nearly all the Company's funded debt, eliminating over 4.6 billion dollars of debt.

The restructuring transaction will be implemented through a prepackaged Chapter 11 process that will be financed by a debtor-in-possession (DIP) financing facility of 2.81 billion dollars. Subject to court approval, Mc Dermott expects the DIP financing, combined with cash generated by Mc Dermott, to enable the Company to stabilise its cash flows, continue operating in the normal course and fulfill its commitments to key stakeholders, including customers, suppliers, joint-venture partners, business partners and employees.

As part of the restructuring transaction, subsidiaries of Mc Dermott have entered into a share and asset purchase agreement (the Agreement) with a joint partnership between The Chatterjee Group and Rhône Group (the Joint Partnership) pursuant to which the Joint Partnership will serve as the ‘stalking-horse bidder’ in a court-supervised sale process for Lummus Technology.

Specialist Book „Heat Transfer Technique“The comprehensive standard work „Heat Transfer Technique“ offers not only a detailed and well-founded presentation of the basics of heat transfer technique, but also shows the latest state of the art and the latest regulations in the use of organic fluids. Thematically, the book is rounded off with an overview of property data of organic heat transfer fluids as well as many use cases from practical experience.

Under the terms of the Agreement, the Joint Partnership has agreed, and is committed, to acquire Lummus Technology for a base purchase price of 2.725 billion dollars. Mc Dermott will have the option to retain or purchase, as applicable, a 10 per cent common equity ownership interest in the entity purchasing Lummus Technology. Mc Dermott expects to hold an auction in approximately 45 days to solicit higher or better bids for the Lummus Technology business. Either the Joint Partnership or the winning bidder at the auction will purchase Lummus Technology as part of the Chapter 11 process, subject to regulatory and court approval.

Proceeds from the sale of Lummus Technology are expected to repay the DIP financing in full, as well as fund emergence costs and provide cash to the balance sheet for long-term liquidity.

Unfold for details of your consent

Stand vom 23.03.2021

Naturally, we always handle your personal data responsibly. Any personal data we receive from you is processed in accordance with applicable data protection legislation. For detailed information please see our privacy policy.

Consent to the use of data for promotional purposes

I hereby consent to Vogel Communications Group GmbH & Co. KG, Max-Planckstr. 7-9, 97082 Würzburg including any affiliated companies according to §§ 15 et seq. AktG (hereafter: Vogel Communications Group) using my e-mail address to send editorial newsletters. A list of all affiliated companies can be found here

Newsletter content may include all products and services of any companies mentioned above, including for example specialist journals and books, events and fairs as well as event-related products and services, print and digital media offers and services such as additional (editorial) newsletters, raffles, lead campaigns, market research both online and offline, specialist webportals and e-learning offers. In case my personal telephone number has also been collected, it may be used for offers of aforementioned products, for services of the companies mentioned above, and market research purposes.

In case I access protected data on Internet portals of Vogel Communications Group including any affiliated companies according to §§ 15 et seq. AktG, I need to provide further data in order to register for the access to such content. In return for this free access to editorial content, my data may be used in accordance with this consent for the purposes stated here.

Right of revocation

I understand that I can revoke my consent at will. My revocation does not change the lawfulness of data processing that was conducted based on my consent leading up to my revocation. One option to declare my revocation is to use the contact form found at https://support.vogel.de. In case I no longer wish to receive certain newsletters, I have subscribed to, I can also click on the unsubscribe link included at the end of a newsletter. Further information regarding my right of revocation and the implementation of it as well as the consequences of my revocation can be found in the data protection declaration, section editorial newsletter.

(ID:46325948)

Technology Purchase Major Restructuring Plan: Mc Dermott to Sell Lummus Technology

Subscribe to the newsletter now

Don't Miss out on Our Best Content

Consent to the use of data for promotional purposes