Jun 2020
Conyers provided Bermuda law corporate advice including advice on structuring, regulatory, securities and governance matters to an ad hoc group of prepetition secured term lenders and DIP term lenders (the “Ad Hoc Lenders”) in connection with the chapter 11 cases of McDermott International, Inc. and its affiliated debtors (collectively, “McDermott”).
McDermott filed voluntary petitions for relief under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas, Houston Division on January 21, 2020 to pursue a Joint Pre-packaged Chapter 11 Plan of Reorganization (the “Plan”) and entered into a comprehensive restructuring support agreement (the “RSA”) with the Ad Hoc Lenders, prepetition LC lenders, an ad hoc bondholder group and other parties.
McDermott’s Plan was confirmed on March 12, 2019, providing for, among other things, an equitization of approximately US$4 billion of debt, with the Ad Hoc Lenders receiving pro rata shares of 94% of the reorganized equity and US$500 million of take-back debt and the sale of McDermott’s Lummus Technology business for US$2.725 billion, in order to, among other things, repay the DIP facility.
Upon the consummation of a series of transactions contemplated by the Plan, a reorganized McDermott emerged from bankruptcy on 30 June 2020 with a new capital structure, which included a new Bermuda parent holding company, new term loan and letter of credit exit facilities and a newly constituted Board of Directors.
Directors Jason Piney and Marcello Ausenda of Conyers’ Bermuda office and Associate Karoline Tauschke of Conyers’ London office worked alongside Davis Polk on the matter.