USA: Management Strategy Mc Dermott Successfully Concludes Restructuring Process

Editor: Ahlam Rais

The comprehensive restructuring process has led to the formation of Mc Dermott’s new Board of Directors. Under this process, David Dickson, President and Chief Executive Officer will continue in his role while Nils Larsen has been appointed as Lead Director of the firm.

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The comprehensive balance sheet restructuring equitises nearly all of Mc Dermott's 4.6 billion dollar funded debt.
The comprehensive balance sheet restructuring equitises nearly all of Mc Dermott's 4.6 billion dollar funded debt.
(Source: Deposit Photos)

Houston/USA – Mc Dermott International has recently announced that the company has successfully completed its restructuring process. The comprehensive balance sheet restructuring equitises nearly all of Mc Dermott's 4.6 billion dollar funded debt. The company emerges with 2.4 billion dollars in letter of credit capacity and 544 million dollars of funded debt.

Mc Dermott has completed the sale of Lummus Technology to a joint partnership between Haldia Petrochemicals, a flagship company of The Chatterjee Group, and Rhône Capital having received all required regulatory approvals and pursuant to the company's plan of reorganisation. Proceeds from the sale of Lummus Technology will repay the debtor-in-possession financing in full, as well as fund emergence costs and provide cash to the balance sheet for long-term liquidity.

"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," said David Dickson, President and Chief Executive Officer of Mc Dermott. "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."

Mc Dermott emerges with a newly constituted Board of Directors, which has assumed its responsibilities, effective immediately. The Board members are:

• David Dickson: Dickson is President and Chief Executive Officer for Mc Dermott International, a position he has held since December 2013. Prior to Mc Dermott, he spent 11 years with Technip and its subsidiaries, including as President of Technip USA, with oversight responsibilities for all of Technip's North America Operations. He has nearly 30 years of experience in the offshore oilfield engineering and construction industry holding various management positions in market development, project management, engineering and construction.

• Nils Larsen: Larsen, who will serve as Lead Director, is a Senior Operating Adviser working with The Carlyle Group's U.S. Equity Opportunities Fund. Prior to partnering with The Carlyle Group, he served in a variety of senior executive positions with the Tribune Company, including the President and Chief Executive Officer of Tribune Broadcasting and as Co-President of Tribune Company. Larsen has significant governance experience in post-bankrupt entities and also serves on the Board of Directors of Vantage Drilling and is the chairman of the Audit Committee.

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• Craig Broderick: Broderick is a Senior Director of Goldman Sachs, and most recently served as the firm's Chief Risk Officer, a member of its Management Committee and chair or co-chair of Goldman's most senior risk committees. In this role. Broderick was head of the firm's 1,000+ person Risk Division and was responsible for managing the firm's credit, market, operational, model and liquidity risks. After spending 32 years with Goldman Sachs, Broderick was the longest serving Chief Risk Officer of a major financial institution and retired in 2018. He currently serves on the board of directors for Bank of Montreal (BMO).

• Barbara Duganier: Duganier is a board member for MRC Global, Noble Energy and West Monroe Partners and formerly a board member of Buckeye Partners and HCC Insurance Holdings. From 2004 to 2013, Duganier served as a managing director at Accenture after serving as an independent consultant to Duke Energy North America. While at Accenture, she held various leadership and management positions in Accenture's outsourcing business, including as Global Chief Strategy Officer and as Global Growth and Offering Development Lead. Duganier began her career with Arthur Andersen and spent 23 years with the firm, including 12 years as an equity partner and two years as the Global Chief Financial Officer for Andersen Worldwide.

• Alan Hirshberg: Hirshberg is a director at Falcon Minerals Corporation and most recently served as Executive Vice President, Production, Drilling & Projects at Conoco Phillips, until he retired in 2019. In this role, he was responsible for the company's worldwide operations, as well as supply chain, aviation, marine, major projects and engineering functions. Prior to joining Conoco Phillips in 2010, Hirshberg worked at Exxon Mobil for 27 years, serving in various senior leadership positions in upstream research, production operations, major projects and strategic planning.

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• Lee Mc Intire: Mc Intire is a Senior Advisor and Board member at Terra Power, where he served as Chief Executive Officer from August 2015 to October 2018. He also serves on the Nuclear Energy Institute's Board of Directors and the Board of Encana Corporation. Mc Intire previously served as Chairman, Chief Executive Officer and President of CH2M Hill variously from 2006 to 2014. Prior to joining CH2M Hill, he was a Partner and Executive Vice President and served on the Board of Directors of Bechtel Corporation from 1989 to 2004.

• Paul Soldatos: Soldatos is a board member and senior advisor in the industrial, service and consumer/retail sectors. Currently, he is a non-executive director of Steenbok Newco 3 (a holding company of Steinhoff Europe), Stripes Holding, (Mattress Firm) and Pepco Group. Soldatos' prior boards include Gucci Group, Saks Holdings, Convenience Foods Systems, and Evoca.