Beleaguered US contractor McDermott International has reached a financial restructuring pact with creditors to be filed under the US Chapter 11 bankruptcy protection regime.

The deal announced on Tuesday, backed by more than two thirds of its creditors, will see the cash-strapped player eliminate about $4.6 billion in debt through conversion into equity under a restructuring process financed through a $2.81 billion debtor-in-possession facility.

In addition, McDermott has agreed the sale of subsidiary Lummus Technology to a partnership of the Chatterjee Group and Rhone Group for $2.725