McDermott Reorganization Plan Attracts Broad Opposition

McDermott International Inc.'s proposed Chapter 11 reorganization plan drew opposition from company shareholders, the SEC, and some creditors.

The plan objection filed Monday by the Coligado Shareholder Group in the U.S. Bankruptcy Court for the Southern District of Texas said that the bankrupt engineering, procurement and construction company’s plan is unfair and may be in bad faith.

The shareholders, whose interests will be wiped out under McDermott’s proposed plan, follow an objection filed Feb. 28 by the Securities and Exchange Commission. The SEC and the shareholders objected to the scope of proposed liability releases for non-debtor third parties.

The shareholders ...