US contractor McDermott International this week revealed it has emerged from Chapter 11 bankruptcy, wiping nearly all of its $4.6 billion funded debt from its balance sheet. A reorganisation plan was approved by a Houston bankruptcy judge in March after McDermott struck a deal with two-thirds of funded creditors to convert nearly all its existing debt into equity. The Houston-based company had filed for bankruptcy protection in January. The reorganisation deal wiped out existing shareholders, while certain bondholders got a 6% share of the new company. The judge also approved the sale of the company's Lummus technology unit as part of that plan, the proceeds of which will repay the debtor-in-pos-session financing as well as fund emergence costs and provide cash for long-term liquidity, McDermott said.
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