McDermott’s Fast-Tracked Bankruptcy Would Hand Keys to Lenders

McDermott Internationalis proposing a bankruptcy process that hands senior secured lenders 94% of the reorganized company and cancels existing equity interests, court papers show.

• The Houston-based engineering firm’s pre-packaged plan is supported by holders of the majority of its term loan claims, senior notes and letter of credit claims, Chief Transformation Officer John R. Castellano says in a court declaration
• Restructuring deal calls for auction of Lummus Technology unit within 45 days and a court approval of its bankruptcy plan within 60 days
• General unsecured claims -- like vendors who are owed money -- would be repaid in full ...