McDermott execs awaiting bankruptcy court judge's comments on plan, settlement

By Jeff Pines

Washington, May 11 - McDermott International Inc. executives are waiting for the judge's comments on its proposed reorganization plan and proposed settlement agreement for its Babcock & Wilcox Co. subsidiary.

In a Tuesday morning conference call, John Nesser, general counsel for the New Orleans-based energy services company, said it is difficult to predict when the judge will release his decision. The plan and the settlement are lengthy and complex.

But assuming the judge returns his comments by June 1, which would be early, Nesser said, then the action would move to the district court, and it is uncertain how the district court will deal with the matter. For example, the judge could allow discovery, or hold hearings.

Whatever either judge decides, assume someone will object, Nesser said, and it could take until the summer of 2005 before all the objections are resolved.

Babcock & Wilcox filed for Chapter 11 in February of 2000 with U.S. Bankruptcy Court for the Eastern District of Louisiana in New Orleans over asbestos lawsuits.

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