NEW ORLEANS--(BUSINESS WIRE)--Oct. 8, 2004--McDermott
International Inc. (NYSE:MDR) ("McDermott") announces that on Oct. 8,
2004, the Honorable Judge Jerry A. Brown of the United States
Bankruptcy Court for the Eastern District of Louisiana issued his
findings of fact, conclusions of law and recommendations regarding
confirmation of The Babcock & Wilcox Company ("B&W") Chapter 11 Joint
Plan of Reorganization (the "Plan") and the associated settlement
contained therein. As a wholly-owned subsidiary of McDermott, B&W
filed for Chapter 11 bankruptcy in New Orleans, La., on Feb. 22, 2000,
as a result of asbestos-related claims.
The Plan will now proceed to the Honorable Judge Sarah S. Vance of
the United States District Court. Judge Vance is expected to review
Judge Brown's findings and recommendations, which review may include
conducting hearings related to any objections to confirmation of the
Plan. After completing her review, it is anticipated that Judge Vance
would issue an order granting or denying confirmation of the Plan.
Once Judge Vance's order is issued, any appeals would proceed to the
Fifth Circuit Court of Appeals and thereafter possibly to the United
States Supreme Court. The Plan will not become effective until all
appeals have been exhausted and certain conditions are either
satisfied or waived, including the entry of a final order of
confirmation. Additionally, McDermott's Board of Directors must give
its approval to the Plan and associated settlement within a thirty day
period prior to the Plan becoming effective. The Board will consider
numerous factors when contemplating approval, including any
developments associated with national legislation on the proposed
Fairness in Asbestos Injury Resolution Act. Due to the variables
involved, McDermott is unable to anticipate the likely timeline as to
when, or if, the Plan would become effective.
Effective Feb. 22, 2000, B&W was deconsolidated from McDermott's
reported financial statements. During the 2002 fiscal year, McDermott
wrote-off its remaining investment in B&W and accrued in its financial
statements the anticipated liability associated with implementing the
Plan which is marked-to-market on a quarterly basis. For additional
detail, please reference McDermott's annual report for the year ended
Dec. 31, 2003, filed on Form 10-K with the Securities and Exchange
Commission.
For more information on B&W, please visit its Web site at
www.babcock.com. Additional information can be obtained on B&W's
reorganization and Chapter 11 proceedings at
www.babcock.com/pgg/pr/reorganization.html.
In accordance with the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995, McDermott International Inc.
cautions that statements in this press release which are
forward-looking and provide other than historical information involve
risks and uncertainties that may impact McDermott's actual results of
operations. The forward-looking statements in this press release
include, among other things, statements about the proposed settlement
of the B&W Chapter 11 proceedings and the anticipated review and
confirmation process with regard to the Plan in the United States
District Court. Although McDermott's management believes that the
expectations reflected in those forward-looking statements are
reasonable, McDermott can give no assurance that those expectations
will prove to have been correct. Those statements are made based on
various underlying assumptions and are subject to numerous
uncertainties and risks. If one or more of these risks materialize, or
if underlying assumptions prove incorrect, actual results may vary
materially from those expected. For a more complete discussion of
these risk factors, please see McDermott's annual report for the year
ended Dec. 31, 2003, and its 2004 quarterly reports filed with the
Securities and Exchange Commission.
McDermott International Inc. is a leading worldwide energy
services company. The Company's subsidiaries provide engineering,
fabrication, installation, procurement, research, manufacturing,
environmental systems, project management and facility management
services to a variety of customers in the energy and power industries,
including the U.S. Department of Energy. Additional information on
McDermott can be obtained at www.mcdermott.com.
CONTACT: McDermott International Inc., Houston
Jay Roueche, 281-870-5462
jroueche@mcdermott.com
www.mcdermott.com
SOURCE: McDermott International Inc.