Court Rules B&W Was Solvent at Time of July 1998 Transfers.Business Editors & Energy Writers NEW ORLEANS--(BUSINESS WIRE)--Feb. 8, 2002 In a ruling filed today in the U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. for the Eastern District of Louisiana The District of Louisiana or Louisiana District was an official United States government designation for the portion of the Louisiana Purchase that had not been organized into Orleans Territory. The area north of present-day Arkansas was also known as Upper Louisiana. , Judge Jerry A. Brown found The Babcock & Wilcox Company (B&W), a unit of McDermott International, Inc. (NYSE NYSE See: New York Stock Exchange :MDR MDR, n See multidrug resistance. MDR, n the abbreviation for minimum daily requirement, specifically the Minimum Daily Requirements for Specific Nutrients compiled by the United States Food and Drug Administration. ), was solvent at the time certain assets were transferred from B&W to its parent, Babcock & Wilcox Investment Company, in 1998. In his judgment, Judge Brown stated The Babcock & Wilcox Company "was solvent under the Louisiana revocatory on July 1, 1998." The text of the ruling is available at www.mcdermott.com. The transferred assets that are the subject of Judge Brown's ruling include BWX Technologies, which makes up McDermott's Government Operations segment, and McDermott Technology, Inc. and Hudson Products Corporation, which are in McDermott's Industrial Operations segment. Also involved was the cancellation of a note receivable note receivable A debt due from borrowers and evidenced by a written promise of payment. Note receivable, an entry on the asset side of many corporate balance sheets, indicates the dollar amount of loans due to be repaid by borrowers. from BWICO to B&W and the transfer of Tracy Power, a dormant shell corporation whose only asset was a note receivable from BWICO. The company will discuss today's ruling with investors during its earnings conference call which is scheduled for Monday, February 11, 2002 at 9:00 a.m. Eastern Time (8:00 a.m. Central Time). To participate in the call, dial (800) 230-1092 approximately 10 minutes before the call begins. The call and a replay will also be available on the investor relations Investor relations The process by which the corporation communicates with its investors. section of the company's website at www.mcdermott.com. A telephone replay will be available beginning at 2:15 p.m. Eastern Time (1:15 p.m. Central Time) Monday, February 11, 2002 by dialing 800/475-6701, access code 626790. McDermott International, Inc. is a leading worldwide energy services company. The Company's subsidiaries manufacture steam-generating equipment, environmental equipment, and products for the U.S. government. They also provide design, engineering, fabrication and installation services to the oil and natural gas industries for offshore production facilities and pipelines. Statements in this release which express a belief, expectation or intention, as well as those which are not historical fact, are forward looking. They involve a number of risks and uncertainties which may cause actual results to differ materially from such forward-looking statements. These risks and uncertainties include factors detailed from time to time in the Company's filings with the Securities and Exchange Commission, including its Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the period ended December 31, 2001, and Form 10-Q Form 10-Q See 10-Q. for the period ended September 30, 2001. |
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