backKing & Spalding has secured USD $900 million dollars for Reficar in its long running dispute with CB&I, owned by McDermott International since 2018, over the construction of the Cartagena oil refinery in Colombia. The outstanding arbitration award was resolved on Friday March 22, 2024, following the conclusion of restructuring proceedings.
After the landmark ICC award in favor of Reficar was issued on June 2, 2023, the McDermott Group filed restructuring proceedings in the United Kingdom and the Netherlands and subsequently initiated a Chapter 15 proceeding in the Southern District of Texas. Together, these proceedings would have had the effect of discharging the arbitration award with essentially no payment to Reficar. However, as a result of our work, Reficar will instead receive preferred shares that convert to 19.9% of the common equity of McDermott International, Ltd. – the McDermott group parent entity which was not a debtor under the June 2, 2023 arbitration award – the right to draw down on USD $95 million letter of credit, retention of the proceeds of another USD $70 million letter of credit, assignment of rights to pursue insurance recovery in an amount up to $215 million, and USD $9 million in fee recovery. The package of consideration received by Reficar amounts to nearly USD $900 million.
This is a tremendous result for Reficar and the culmination of a hard-fought 8+ year dispute. King & Spalding represented Reficar in both the ICC construction arbitration and subsequent enforcement and bankruptcy proceedings.
A cross office team led by Mike Stenglein (Austin), who also led the arbitration, restructuring partner Matt Warren (Chicago), disputes partner Tom Sprange KC (London) and disputes partner Sarah Walker (London), represented Reficar in the restructuring proceedings.
King & Spalding’s team for the arbitration and restructuring proceeding also included the following core team members: Adam Gray, Harry Burnett, Doak Bishop, Roberto Aguirre Luzi, Matt Vandenberg, Luke Roniger, Jeff Mills, Nate Bilhartz and Luisa Gutierrez Quintero handled the arbitration; and Lindsey Henrikson, Benjamin Jones, Patrick Schumann, Scott Davidson, Michael Handler, Valerie Eliasen, Caspian Heeler, Erin Vandzura, Mark McLennan, Rosie Watterson, Tom Childs, Viva Dadwal, Tamsin Parzen, Amy Cho and Lisa Wong handled the restructuring.