McDermott International shares fell for a second day after reports that the company is negotiating. Project team remains focused on safety and quality performance. McDermott’s Lummus Technology will upgrade existing unit for production of higher value products utilizing Indmax FCC. Technology award for Next Wave Energy Partners, LP grassroots alkylate production facility in Pasadena, Texas.
The lenders ahead of a bankruptcy filing that could come within weeks. Chiyoda International Corporation and Zachry Group announced the beginning of commercial operation of Train 1 by owner Freeport LNG Development. The Company expects to utilize the amounts available under Tranche B to continue financing working capital.
The Houston-based company builds oil platforms. The project is the largest ethylene integration project in the world. Technology award for Formosa Chemicals Industries Ningbo Limited grassroots AMS recovery unit in Ningbo, China. The gas-export plants for energy companies is in discussions with lenders including Baupost Group LLC.
Mark Coscio, McDermott’s Senior Vice President says “The quality performance as we work toward completion of Train 2”.
McDermott’s Lummus Technology is the master licensor of multiple licensed units. This accomplishment is attributable to the entire team’s unwavering commitment to project delivery. HPS Investment Partners LLC about providing a $2 billion bankruptcy loan. The past few months have brought significant accomplishments for Train 1 of the Freeport LNG project.
McDermott also announced that it has entered into a forbearance agreement with holders of over 35 percent. McDermott’s integrated execution approach makes it uniquely positioned to execute this phase of the project. McDermott shares dropped as much as 25% in early trading on last Tuesday.
McDermott’s Lummus Technology will provide both the Process Design Package (PDP) Engineering. Representatives for McDermott, Baupost and HPS declined to comment on the negotiations. The award includes technology license and basic engineering services. The scope includes license, basic engineering package, extended basic engineering, training, technical services.
The company’s shares were down as much 64% Monday on the news. Dow Jones reported the news earlier. The award represents the first Indmax FCC license in Europe. The applicable holders of the 2024 Notes have agreed to forbear from exercising any rights. Lummus Technology’s proprietary ethylene steam cracking process is the most widely-applied process for the production.
McDermott has been under pressure since September. Zachry Group, as the joint venture lead, partnered with McDermott for the Pre-FEED in 2011. Lummus Technology has been present in Russia for many years. The commercialization of this technology improves margins, lessens environmental footprint.
The award will be reflected in McDermott’s Q3 backlog. Its stock and bonds plunged on news that it had hired advisers for turnaround advice. It followed by FEED works to support the early development stage of the project. The company has struggled to integrate its acquisition of Chicago Bridge & Iron Co.
McDermott is in discussions with additional holders of the 2024 Notes. The project is the largest ethylene integration project in the world. Lummus Technology’s proprietary Dimer® process converts ethylene to butylene for alkylation to produce a high-octane alkylate. The project scope includes three pre-treatment trains, a liquefaction facility with three trains.
Leon de Bruyn, Senior Vice President says “This award represents the first license of this AMS technology”.
The backlog of projects, leading to lower earnings results. Freeport LNG Trains 2 and 3 remain on track to meet their previously announced schedules. It located near Russia’s shores at the Gulf of Finland. McDermott and Chiyoda have provided the engineering, procurement and construction for the Cameron LNG project.
The company secured part of a $1.7 billion rescue financing package and forbearance agreement from some of its creditors. McDermott is a premier, fully integrated provider of technology, engineering. The natural gas processing chemical plant will be comprised of two ethylene cracking facilities.
It relief period expires on Jan. 15, and could be a trigger for a bankruptcy filing. McDermott’s end-to-end infrastructure and technology solutions are an important differentiator for operators in Russia. The project includes three liquefaction trains with a projected export of 12 million tonnes per annum of LNG.
On Tuesday, its 2024 bonds were largely unchanged at $0.11 on the dollar. McDermott’s Lummus Technology will provide the license and basic engineering for the Indmax FCC technology. Company announced that it has been awarded a sizeable technology contract.
The state-of-the-art Indmax FCC technology was jointly developed by Indian Oil Corporation (IOCL). The Tranche B funding is expected to allow McDermott to continue collaborative discussions. The potential future pull-through opportunities related to the Lummus Technology portfolio make us uniquely positioned. McDermott has also been trying to shore up liquidity through a sale of its Lummus Technology business.