McDermott’s stock keeps tumbling after WSJ report of bankruptcy discussions

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Shares of McDermott International Inc. tumbled 15% in premarket trading Tuesday, adding to the previous session’s 50% plunge, as investors brace for a potential bankruptcy filing. The Wall Street Journal reported late in Monday’s session that the provider of engineering and construction services to the energy industry has been in talks with its lenders to file for bankruptcy within weeks. The stock was trading up 7.4% at a near 8-week high around 3 p.m. Eastern Monday, just before the WSJ report was released, then fell as much as 64.4% before closing down 49.7% at 75 cents. Citing people familiar with the situation, the WSJ report said a group of lenders, led by HPS Investment Partners and Baupost Group LLC were in talks to provide a loan of around $2 billion to keep McDermott’s operations running during bankruptcy. McDermott’s stock has plunged 88.5% year to date through Monday, while the SPDR Energy Select Sector ETF has gained 4.1% and the S&P 500 has climbed 28.5%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.