McDermott International, Inc.

A popular technology solutions provider to the energy sector, Houston-based McDermott International, Inc. has met Chapter 11 bankruptcy - a fate which wouldn't have surprised vigilant CreditRiskMonitor® subscribers.

After all, the company had been firmly entrenched in the FRISK® score "red zone" for more than a year's time:

McDermott FRISK image

This Bankruptcy Case Study drills deep into why McDermott International was not able to stave off bankruptcy. In 2018, the company combined its offshore engineering and construction business with Chicago Bridge & Iron (CB&I) and its liabilities jumped to $7.86 billion at the end of June 2018, from $1.36 billion in the previous quarter. It had total debt of $4.32 billion as of November 2019.

McDermott International also said it was being investigated by the SEC over projected loss disclosures. The company also faces a probe from the U.S. Department of Justice over allegedly fraudulent invoices at a Department of Energy project in South Carolina that is linked to CB&I.

Download the free report to learn more.

Ready to learn more?

Our FRISK® score model incorporates four powerful risk inputs:

  • “Merton”-type model of stock market capitalization and volatility
  • Financial ratios, including those used in the Altman Z”-Score Model
  • Bond agency ratings from Fitch, Moody's, and DBRS Morningstar
  • Website click pattern data from CreditRiskMonitor® subscribers, representing key credit decision-makers at more than 35% of current Fortune 1000 companies plus thousands of other large companies worldwide

Since the start of 2017, the FRISK® score’s rate of success in capturing public company bankruptcy is 96%: 235 identified out of 243 bankruptcies. In any given year, you can count on one hand the times we miss – and in those outlier cases, the circumstances deal with unusual, unforeseen events such as natural disasters and CEO fraud.

Download the free report to learn more.

About Bankruptcy Case Studies

CreditRiskMonitor® Bankruptcy Case Studies provide post-filing analyses of public company bankruptcies. Our case studies educate subscribers about methods they can apply to assess bankruptcy risk using our proprietary FRISK® score, robust financial database, and timely news alerts.

In nearly every case, a low FRISK® score gave our subscribers early warning of financial distress within a one-year time horizon. Our proprietary FRISK® score predicts bankruptcy risk at public companies with 96% accuracy. The score is formulated by a number of indicators including stock market capitalization and volatility, financial ratios, bond agency ratings from Moody’s, Fitch and DBRS, and crowdsourced behavioral data from a subscriber group that includes 35% of the Fortune 1000 and thousands more worldwide.

Whether you are new to credit analysis or have decades of experience under your belt, CreditRiskMonitor® Bankruptcy Case Studies offer unique insights into the business and financial decline that precedes bankruptcy.