McDermott's bankruptcy will eliminate billions of debt. Two thirds of debt creditors have agreed to a restructuring through a prepackaged Chapter 11 Bankruptcy.
Creditors supported the bankruptcy with a $2.81 billion DIP.
Pre pandemic, McDermott had quarterly revenues of approximately $2 billion.
The Plan of Reorganization calls for $1.3 billion of bond debt to recover 6 % of the new equity.
We recommend that distressed debt investors take a close look at:
MDR 10.625% due 5/1/2024 currently trading flat at 6.
Stephen P. Vlahos
Performance Plus Advisors, Inc.