McDermott International Inc., a Houston-based engineering and construction firm, announced Dec. 27 that it completed its remaining financial obligations under subsidiary The Babcock & Wilcox Co.’s reorganization and settlement agreement to fund an asbestos trust. On Dec. 21, 2006, McDermott paid the $355-million contingent payment. Earlier in the month, it retired the $250-million contingent promissory note from B&W’s credit facility. McDermott expects these moves will result in it incurring a charge of about $5 million during the fourth quarter of 2006. Additionally, McDermott announced it will combine its two U.S. operating groups, McDermott Inc. and J. Ray McDermott Holdings LLC, into a single group.
McDermott Finally Comes Out From Under the Asbestos Cloud
January 8, 2007