McDermott Successfully Completes Comprehensive Restructuring Process

HOUSTON, June 30, 2020 /PRNewswire/ -- McDermott International Ltd. ("McDermott" or the "Company") today announced that the Company has successfully completed its restructuring process. The comprehensive balance sheet restructuring equitizes nearly all of McDermott's $4.6 billion of funded debt. The Company emerges with $2.4 billion in letter of credit capacity and $544 million of funded debt.

McDermott has completed the sale of Lummus Technology to a joint partnership between Haldia Petrochemicals Ltd., a flagship company of The Chatterjee Group, and Rhône Capital having received all required regulatory approvals and pursuant to the Company's plan of reorganization. Proceeds from the sale of Lummus Technology will repay the debtor-in-possession financing in full, as well as fund emergence costs and provide cash to the balance sheet for long-term liquidity.

"We are pleased to have completed this process so swiftly thanks to the dedication of our employees and the support of our new owners, customers, suppliers and partners," said David Dickson, President and Chief Executive Officer of McDermott. "We will continue executing on our significant backlog, with a new capital structure to match and support the strength of our operating business, and we emerge well-positioned for long-term growth and success, even amid this period of global uncertainty. We look forward to continued delivery on customer projects. Finally, we congratulate our Lummus colleagues, and look forward to continuing our working partnership with Lummus as we move into the future."

McDermott emerges with a newly constituted Board of Directors, which has assumed its responsibilities, effective immediately. The Board members are:

    --  David Dickson: Mr. Dickson is President and Chief Executive Officer for
        McDermott International Ltd., a position he has held since December
        2013. Prior to McDermott, he spent 11 years with Technip S.A. and its
        subsidiaries, including as President of Technip USA Inc., with oversight
        responsibilities for all of Technip's North America Operations. He has
        nearly 30 years of experience in the offshore oilfield engineering and
        construction industry holding various management positions in market
        development, project management, engineering and construction.
    --  Nils Larsen: Mr. Larsen, who will serve as Lead Director, is a Senior
        Operating Adviser working with The Carlyle Group's U.S. Equity
        Opportunities Fund. Prior to partnering with The Carlyle Group, he
        served in a variety of senior executive positions with Tribune Company,
        including the President and Chief Executive Officer of Tribune
        Broadcasting and as Co-President of Tribune Company. Mr. Larsen has
        significant governance experience in post-bankrupt entities and also
        serves on the Board of Directors of Vantage Drilling and is the chairman
        of the Audit Committee.
    --  Craig Broderick: Mr. Broderick is a Senior Director of Goldman Sachs,
        and most recently served as the firm's Chief Risk Officer, a member of
        its Management Committee and chair or co-chair of Goldman's most senior
        risk committees. In this role. Mr. Broderick was head of the firm's
        1,000+ person Risk Division and was responsible for managing the firm's
        credit, market, operational, model and liquidity risks. After spending
        32 years with Goldman Sachs, Mr. Broderick was the longest serving Chief
        Risk Officer of a major financial institution and retired in 2018. He
        currently serves on the board of directors for Bank of Montreal (BMO).
    --  Barbara Duganier: Ms. Duganier is a board member for MRC Global, Noble
        Energy and West Monroe Partners and formerly a board member of Buckeye
        Partners, L.P. and HCC Insurance Holdings. From 2004 to 2013, Ms.
        Duganier served as a managing director at Accenture after serving as an
        independent consultant to Duke Energy North America. While at Accenture,
        she held various leadership and management positions in Accenture's
        outsourcing business, including as Global Chief Strategy Officer and as
        Global Growth and Offering Development Lead. Ms. Duganier began her
        career with Arthur Andersen and spent 23 years with the firm, including
        12 years as an equity partner and two years as the Global Chief
        Financial Officer for Andersen Worldwide.
    --  Alan Hirshberg: Mr. Hirshberg is a director at Falcon Minerals
        Corporation and most recently served as Executive Vice President,
        Production, Drilling & Projects at ConocoPhillips, until he retired in
        2019. In this role, he was responsible for the company's worldwide
        operations, as well as supply chain, aviation, marine, major projects
        and engineering functions. Prior to joining ConocoPhillips in 2010, Mr.
        Hirshberg worked at ExxonMobil for 27 years, serving in various senior
        leadership positions in upstream research, production operations, major
        projects and strategic planning.
    --  Lee McIntire: Mr. McIntire is a Senior Advisor and Board member at
        TerraPower, where he served as Chief Executive Officer from August 2015
        to October 2018. He also serves on the Nuclear Energy Institute's Board
        of Directors and the Board of Encana Corporation. Mr. McIntire
        previously served as Chairman, Chief Executive Officer and President of
        CH2M HILL variously from 2006 to 2014. Prior to joining CH2M HILL, he
        was a Partner and Executive Vice President and served on the Board of
        Directors of Bechtel Corporation from 1989 to 2004.
    --  Paul Soldatos: Mr. Soldatos is a board member and senior advisor in the
        industrial, service and consumer/retail sectors.  Currently, he is a
        non-executive director of Steenbok Newco 3 Limited (a holding company of
        Steinhoff Europe AG), Stripes Holding Inc., (Mattress Firm) and Pepco
        Group Limited. Mr. Soldatos' prior boards include Gucci Group N.V., Saks
        Holdings Inc., Convenience Foods Systems BV, and Evoca S.p.A.

Kirkland & Ellis LLP is serving as legal counsel to McDermott, Evercore Group L.L.C. is serving as the Company's financial advisor and AP Services, LLC, an affiliate of AlixPartners, is serving as operational advisor. Jackson Walker L.L.P. is serving as local legal counsel, Baker Botts L.L.P. is serving as corporate legal counsel and Arias, Fabrega & Fabrega is serving as Panamanian legal counsel. Prime Clerk is serving as administrative agent.

About McDermott
McDermott is a premier, fully-integrated provider of engineering and construction solutions to the energy industry. Our customers trust our technology-driven approach to design and build infrastructure solutions to responsibly transport and transform oil and gas into the products the world needs today. From concept to commissioning, our expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. It is called the "One McDermott Way."

Operating in over 54 countries, McDermott's locally-focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit

Forward-Looking Statements
McDermott cautions that statements in this communication which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and about McDermott's positioning for long-term growth and success. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit or capital markets; our inability to successfully execute on contracts in backlog; changes in project design or schedules; the availability of qualified personnel; changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties; changes in industry norms; actions by lenders, other creditors, customer and other business counterparties of McDermott and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. You should not place undue reliance on forward-looking statements. This communication reflects the views of McDermott's management as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.


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