McDermott Said to Be in Talks With Lenders to File Bankruptcy - Bloomberg

McDermott Said to Be in Talks With Lenders to File Bankruptcy - Bloomberg:

McDermott International Inc. is in discussions with lenders about providing a $2 billion bankruptcy loan, ahead of a Chapter 11 filing that could come in the next few weeks, according to people with knowledge of the matter.

The Houston-based engineering and construction firm is negotiating with a group including Baupost Group LLC and HPS Investment Partners LLC, the people said, who asked not to be identified discussing confidential matters. Dow Jones reported the news earlier.

The company’s shares were down as much 64% after the news that it was negotiating a bankruptcy loan. Representatives for McDermott, Baupost and HPS declined to comment.

McDermott is facing a Jan. 15 deadline on a forbearance agreement with some of its creditors. Its lenders previously agreed to provide as much as $1.7 billion in rescue financing, provided it meets certain conditions. The company is currently trying to sell its Lummus Technology business.