December 30, 2019
Stock in Houston oil services company McDermott International Inc. plunged from $1.73 to as low as $0.60 on Monday as rumors a Chapter 11 filing circulated.
The engineering and construction company has reported losses on some liquified natural gas construction projects and its stock plunged earlier this year following disclosures about projected losses surrounding one Louisiana liquefied natural gas project.
The Wall Street Journal reported on Monday that a group of lenders to be led by HPS Investment Partners and investing group Baupost are discussing a possible DIP loan of around $2 billion to allow McDermott toi provide letters of credit, crucial in operation during bankruptcy proceedings.
Under terms being discussed, McDermott would continue during bankruptcy to pursue the sale of its Lummus Technology unit — expected to be worth about $2.5 billion — for which the company has reportedly fielded unsolicited bids.