Shares of McDermott International Inc.
tumbled 18% on heavy volume, to pace all NYSE decliners for a second-straight session, amid fears that the provider of engineering and construction services to the energy industry may be mulling a bankruptcy after reports that it hired AlixPartners LLP as a turnaround consultant. Trading volume ballooned to 65 million shares, compared with the full-day average of 9.8 million shares and enough to make the stock the most actively traded on major U.S. exchanges. The selloff follows a record 63% plunge for the stock on Wednesday after The Wall Street Journal reported the hiring of AlixPartners. The stock was trading at the lowest levels seen during regular-sessions hours since May 6, 2003. The extended declines comes after the company responded to the report by saying it “routinely” hires external advisors, and that it was taking positive and proactive measures to improve its balance sheet and capital structure. The stock has now plummeted 73% year to date, while the S&P 500
has gained 20%.
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