McDermott interim financing approved; plan hearing set for March 12

By Caroline Salls

Pittsburgh, Jan. 23 – McDermott International, Inc. obtained court approval to access $850 million of a proposed $2.81 billion of debtor-in-possession financing on an interim basis, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

The final hearing is scheduled for Feb. 24.

The company said it expects the DIP financing, combined with cash generated by McDermott, to enable it to stabilize its cash flows, continue operating in the normal course and fulfill its commitments to key stakeholders, including customers, suppliers, joint-venture partners, business partners and employees.

Credit Agricole CIB will act as DIP letter-of-credit facility agent, and Barclays Bank plc as DIP term loan agent.

The DIP financing will mature nine months after the bankruptcy filing date, subject to a 90-day extension under specified circumstances.

Interest will accrue at a rate of Libor plus 900 basis points.

In addition, the court scheduled a combined hearing on confirmation of McDermott’s pre-packaged plan of reorganization and approval of the related disclosure statement. That hearing will be held on March 12.

McDermott is a Houston-based provider of technology, engineering and construction solutions to the energy industry. The company filed bankruptcy on Jan. 21 under Chapter 11 case number 20-30336.

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