Thread regarding McDermott International Inc. layoffs

Will Lummus be sold and save the day?

Has all the drama scared off potential Lummus buyers or JV partners?
We're in a tight spot here and people are losing faith.

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Post ID: @11TkocTS

2 replies (most recent on top)

Good analysis and agree with potential sale price not being anywhere DDs wish. Lummus doesn’t seam to have any relive the technologies that the world will use going forward. We met a few of the Lummus people and they don’t seem to have many industry leaders. Specifically guys that people approach at conferences etc. seem to be a lot of me too technologies. We’ll still out in a bid ~1bn and let most of those people go. Can’t understand many of them anyway (not a knock but market reality).

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Post ID: @11TkocTS-1hcv

I don’t think so.

Because: the bond holders of the super priority notes (the first wave of people to get paid back for the $650M/$1.7B bridge loans) will make sure they get fair/good $ for Lummus. It is no bond holders’ interest to let Lummus go for cheap....unless the bond holders are selling to another company they have equity in.

But I don’t think it will go for A bargain basement price. I certainly think MDR is negotiating from a position of weakness, and that will hurt the final sale price.

If I were a betting man. (Pure guess) I’d say it goes for $1.0B-$1.5B (a far cry from the $2+B DD said it was worth)

After the disappointing sale price. MDR will likely seek reorganization/bankruptcy.

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Post ID: @11TkocTS-ryy

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