- Extends Company Financing Three Years
- Fully and Finally Resolves Reficar Arbitration Award and Related Liabilities
- Timely Completes All Legal Proceedings in the Netherlands and the UK
McDermott International has completed the transactions contemplated by the Transaction Support Agreement ('TSA'), including the successful conclusion of the interrelated Dutch and UK legal processes that support the TSA, full resolution of the Reficar arbitration award related liabilities, and the amendment and extension of McDermott's letter of credit and term loan facilities.
As reported in September 2023, the Transaction Support Agreement reflects strong support of the Company's owners and lenders; extends McDermott's letter of credit and term loan facilities for three years, until mid-2027; and resets McDermott's capital structure for long-term growth and success.
All respective courts have approved and confirmed the Company's plans. This includes approval of the plans of McDermott International Holdings B.V. and Lealand Finance Company B.V. in the Netherlands under the Dutch Act on Confirmation of Extrajudicial Plans (Wet Homologatie Onderhands Akkoord or 'WHOA'), and the plan of CB&I UK Limited under Part 26A of the Companies Act 2006 (UK) in England. Following that, on March 22, the U.S. Court recognized the Dutch and UK rulings pursuant to Chapter 15.
These court orders fully resolve the Reficar arbitration award and related liabilities.
Michael McKelvy, President & CEO of McDermott, said: 'We are grateful for the strong, continued support of our owners and lenders and our key clients, vendors, and employees. We have completed the legal processes and the transactions contemplated by the Transaction Support Agreement smoothly and effectively. This adds to our positive momentum initiated with the strategic changes we announced last year. We are excited to move forward and continue safe and excellent delivery for our customers.'
McKelvy continued, 'I would like to thank our incredible McDermott team for their dedication to safe, efficient, and high-quality work and for maintaining our collective focus on meeting our commitments throughout the processes. McDermott has a 100-year history of executing exceptional, innovative projects for clients around the world. We are excited to continue to meet expanding customer and global needs and to create value for all of our stakeholders for years to come.'
Kirkland & Ellis LLP and NautaDutilh served as legal counsel to McDermott; Credit Suisse/UBS served as the Company's financial advisor; and Alvarez & Marsal served as restructuring advisor.
Source: McDermott
