McDermott Is Said to Prepare for Bankruptcy as Soon as Next Week
- Company may file ahead of Jan. 21 deadline on default waiver
- Negotiations said to be centering around debt-for-equity swap
An oil platform at the Mcdermott International fabrication facility in Altamira, Mexico.
Photographer: Luis Antonio Rojas/BloombergThis article is for subscribers only.
McDermott International Inc. is preparing to file for bankruptcy as soon as next week to address its more than $4 billion debt load, according to people with knowledge of the matter.
The Houston-based company, which builds oil platforms and gas-export plants for energy producers, is negotiating a restructuring plan that could see its debt converted into equity with existing term-loan lenders getting the majority of the shares, said the people. Unsecured creditors would receive less than 10% of the equity along with warrants, one of the people said.