06.03.2020 • NewsElaine Burridgemcdermott

McDermott Progresses Lummus Sale to Chatterjee/Rhone

McDermott Progresses Lummus Sale to Chatterjee/Rhone (c) McDermott
McDermott Progresses Lummus Sale to Chatterjee/Rhone (c) McDermott

Engineering and construction group McDermott will move forward with its previously announced sale of subsidiary Lummus Technology to a partnership of The Chatterjee Group and Rhone Capital, having failed to attract higher bids at auction.

In January, McDermott entered into a share and asset purchase agreement to sell the business to the partnership as the “stalking horse bidder” for a base price of $2.725 billion, subject to receiving higher or better bids through a court-supervised auction.

The US company confirmed it did not receive a higher or better bid during the solicitation period and the auction previously scheduled for Mar. 9 will not take place.

McDermott added that it will have the option to retain or purchase a 10% common equity ownership interest in the entity that buys Lummus Technology.

The sale is part of McDermott’s Chapter 11 bankruptcy process, which will see it implement a major restructuring that is expected to wipe out more than $4.6 billion of debt. Proceeds are expected to repay McDermott’s debtor-in-possession (DIP) financing in full as well as fund emergence costs and provide cash to the balance sheet for long-term liquidity.

A hearing to confirm the sale will take place on Mar. 12.

Special Issue

Circular Plastics Economy
Explore the Future of Plastics

Circular Plastics Economy

This special CHEManager issue explores the industry’s pivotal shift towards a more sustainable, circular plastics value chain. Readers will find expert analysis and real-world solutions for today’s most pressing recycling and regulatory challenges.

Innovation Pitch

The Start-up Platform for Chemistry & Life Sciences
Discover Tomorrow’s Innovators

The Start-up Platform for Chemistry & Life Sciences

CHEManager Innovation Pitch supports innovation in the chemistry and life sciences start-up scene. The platform allows founders, young entrepreneurs, and start-ups to present their companies to the industry.

most read