McDermott to proceed with The Chatterjee Group and Rhône Capital agreement on Lummus Technology

McDermott to proceed with The Chatterjee Group and Rhône Capital agreement on Lummus Technology
Published: 5 March 2020 - 5 a.m.
By: Martin Menachery
McDermott International announced that the company intends to move forward with the previously announced share and asset purchase agreement to sell all of the Lummus Technology business to a joint partnership between The Chatterjee Group and Rhône Capital.

McDermott did not receive a higher, or better bid during the solicitation period, and the auction previously scheduled for Monday, 9 March 2020, will not occur.

As announced on 21 January 2020, subsidiaries of McDermott entered into a share and asset purchase agreement to sell Lummus Technology to The Chatterjee Group and Rhône Capital, as the ‘stalking horse bidder’, for a base purchase price of $2.725bn, subject to higher, or otherwise better bids received through a court-supervised auction process.

Under the terms of the agreement, McDermott will have the option to retain, or purchase, as applicable, a 10% common equity ownership interest in the entity purchasing Lummus Technology.

The sale hearing to confirm the sale of Lummus Technology to the joint partnership will take place on Thursday, 12 March 2020, at 9:00am CT.

Proceeds from the sale of Lummus Technology are expected to repay McDermott's DIP financing in full, as well as fund emergence costs and provide cash to the balance sheet for long-term liquidity.

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