Thread regarding McDermott International Inc. layoffs

Stock

Why would the stock be fully canceled and be worth nothing? The company will continue to operate, and new stock will be issued, so why would it not transfer to the new stock?

Don’t know much about stock, this is unfortunately from my time with CB&I.

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Post ID: @OP+13aGlk4w

21 replies (most recent on top)

Retail investors were misled by management. How many times did we hear that Cameron has turned the corner. That BK is just a rumor. Company is in sting cash position..... Lies and deceit. Under SOX they should be held accountable for fraud and negligence.

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Post ID: @Hhqk+13aGlk4w

Remember this golden oldie?
"Retention bonuses are needed so that top management does not jump ship. It can not be righted without those that know the industry and learn from their mistakes."

I guess the lesson learned is that to right this ship, you need to throw overboard all those passengers you invited to join you on your cruise. And then invite a whole bunch of new saps. The old stockholders were irretrievably angry anyway, so get rid of them. The new stockholders are p-ss-d too but you can dangle some hope of not-a-complete-loss.

If only the old stockholders had some right. Hmm
@7hts+13aGlk4w
@3jdw+13aGlk4w
@3bka+13aGlk4w

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Post ID: @fijc+13aGlk4w

An even 5 cents ($0.0500) closing price today. Love double zeros at four decimal places. Smells like ... Victory.

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Post ID: @dcxh+13aGlk4w

So am I reading this right? The release they sent me is for everything, not only my stock losses?
So if I find out that maybe I was exposed to black mold in their disgusting building or asbestos, or I was discriminated in pay, I am releasing them? And my heirs are releasing them? Do I understand this?

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Post ID: @chkz+13aGlk4w

Where can you obtain this "opt out" form?

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Post ID: @alva+13aGlk4w

Why wouldn’t individual investors “opt out” as cancelling the original stock makes their investment worth ZERO.

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Post ID: @8ljf+13aGlk4w

".. McDermott shareholders will be receiving a form soon that allows them to "Opt Out" of granting releases that are included in the reorganization plan. If a shareholder does not act and does not return the form to Opt Out, they are assumed to have granted the releases and can't be a beneficiary of any successful lawsuit against "bad actors". ... Shareholders could try to get an Official Equity Committee appointed under Section 1102. Shareholders need to send the request immediately for an appointment to the U.S. Trustee. If that fails, they can file a request with Judge David Jones. "

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Post ID: @7hts+13aGlk4w

So going bankrupt, canceling stock, but keeping stock comp for management.

"Learned from their mistakes"? By hiring Rent-a-Exec to do their jobs for them? When do the mistakes stop and the learning start?

Is this "righting this ship"? Yeah, well if you mean the company didn't liquidate but did the next worst thing, okay. BTW are the Focus projects still generating losses? Ship isn't really righted if the fundamental problems aren't fixed. But we don't know because we have had an earnings call in 6 months. Last one was pathetic. Surprise losses.

Did this 4Q filing with the SEC make you confident that the losses won't continue?

https://www.sec.gov/Archives/edgar/data/708819/000119312519270495/d24467dex992.htm

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Post ID: @4caa+13aGlk4w

Smells like class action law suit especially for non institutional investors that have less access to information for decisions. Mislead by statements by management, continual do your jobs because all is OK, denied rumors of closing the doors, and stating Lies about bankruptcy and other bad news. Any lawyers reading these streams? Put a dent in Mcdermott management plans to cancel the stock!

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Post ID: @3bka+13aGlk4w

NO again. Some lenders demanded they be given Lummus as repayment. They would not back down. Other lenders wanted further payments whereas there was no money to pay them. Thus the bk. If lenders sat quietly, McDermott was willing to borrow more and keep spending.

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Post ID: @3nds+13aGlk4w

So there's no representative from a shareholder's committee at the table? Also didn't the company file, not the lenders?

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Post ID: @3jdw+13aGlk4w

Simple, NO. Bk judge's job is not to find the gulity party whom caused the bk. His job is to keep lenders (who kicked off the bk process) at bay and let the company to reoganize. That simple.

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Post ID: @3omh+13aGlk4w

Interesting. So let's say hypothetically, not MDR, a company is planning bk or is sliding toward bk. But someone authorised to speak for the company is denying. Posting disinformation. Silencing public participation with threats of lawsuits. What possible effect? SEC violation? Liability to other managers? Would a bk judge consider this in weighing the plan of bk proposed by the hypothetical co? I don't know. Just asking.

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Post ID: @2jaz+13aGlk4w

shareholders need to subpoena board and c suite records to find out how long bankruptcy was part of the plan. Is it really possible to buy the Fuc-us projects that just sank a company twice MDR's size and think you can magically do better? Especially when you don't know how to run an Onshore project yourself?

And that forensic accounting thing. Another good idea.

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Post ID: @2kbi+13aGlk4w

According to the sec filing they are holding back a percentage of the new stock for the excom and the bod. So I guess since they expedited their retention bonus and are giving themselves new stock then they should be ok. For the rest of us, we’re SOL. And where are all the ir/hr/excom trolls who for months have been on this site praising the mgt and insulting employees with concerns.

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Post ID: @1qny+13aGlk4w

With the "new" post-Ch11 MDR, the current inept CEO and BoD will likely be dismissed. Although with well-deserved (not) golden parachutes (sarcasm alert). They will laugh, pocket their dollars, and move on to scamming yet other companies for their so-called business wisdom.

With DSquared and the current comatose BoD kicked to the roadside, perhaps there's hope for MDR Version 2.0.

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Post ID: @1hxk+13aGlk4w

Dumb dd and his cohorts barrowed too much and stole too much. Banks now repossed McDermott and the stock is worth zero. No different than the bank reposseeing your house if you do not pay the mortgage every month. Got it?

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Post ID: @1glo+13aGlk4w

Company had a negative net worth for a long time. But the stock didn't go to zero because 90% was owned by institutional investors and the rest by employees who don't know how to read a financial statement. The net value of the company was funded by debt. Unsecured creditors and shareholders have no rights and even less brains. If you gave new stock to them, you'd have to dilute the secured lenders down. Only if there were something left over after the secured lenders were made whole, the unsecured lenders would get the crumbs. If the unsecured lenders were made whole, the stockholders might get something, but then MDR probably wouldn't be in bankruptcy in the first place.

Honestly, after everything you should have seen or heard, on this site, in the Q/K, in the financial press, I have zero sympathy for people who had any stock in this company. Even employees with LTIPs should have quit or expected it to be just monopoly money

Now that your shares are cancelled, your chance to force a change in corporate governance is gone. But watch how the board & management spin this to the new shareholders .... like they saved the day. Just like WFT did before investors finally woke up. You disgust me.

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Post ID: @1dcv+13aGlk4w

I think Woody Gutherie said, “As you go through you understand some men rob you with a knife others with a pen.”

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Post ID: @1jkp+13aGlk4w

The stock is canceling, ending, cease to exist, disappearing, finito. MDR will then issue new shares that will be owned 94% by the bank that gave them the lifeline. 6% will go to the other banks. So that means 100% of stock will be owned by banks. No swap lping old stock for new stock. The stockholders got the shaft with no Vaseline. Some analysts say that the stockholders will most likely do a class action lawsuit for the staggering loss in equity of shareholder value. I hope those that had stock sold a LONG time ago.

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Post ID: @vqe+13aGlk4w

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