ASBESTOS LITIGATION: Babcock To Revise Its Disclosure Statement
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Published April 25, 2003

The lawyers party to the bankruptcy case of Babcock & Wilcox Co. said
the company will revise the Chapter 11 disclosure statement to address
objections.  Another hearing on the disclosure statement is set for May
8, and according to Gay Mayeux, a spokeswoman for the parent company of
the boiler maker, McDermott International Inc. (MDR), Babcock & Wilcox
is hopeful the bankruptcy court will set a confirmation hearing for its
Chapter 11 plan after the said hearing.  She further declared that no
major changes will be made to the plan.

Some of the objections to the disclosure statement related to
qualification of people to vote on the company's reorganization plan
and claims of those who haven't provided adequate information.
Attorneys on the case said the court wants Babcock & Wilcox to submit
an amended disclosure statement, addressing the various objections, by
May 5.

A disclosure statement sets out how a company under bankruptcy
protection plans to pay off creditors and is generally filed in
conjunction with a Chapter 11 reorganization plan.  The company's
disclosure statement faced limited objections from an unofficial
committee of certain asbestos claimants, as well as Texaco Marine
Services Inc. and Atlantic Richfield Co. at a hearing in U.S.
Bankruptcy Court in New Orleans.

In its objection filed with the court, the committee of asbestos
claimants said the voting procedures in the disclosure statement allow
people who made claims after the bar dates to vote on the
reorganization plan and doesn't disqualify claims that don't provide
sufficient information.

Babcock & Wilcox has said up to 75% of the 221,000 asbestos claims it
has received don't supply proper medical or work history information.
Allowing such claims to have votes on the company's plan "severely
impinges on the rights of those with legitimate claims against the
debtor," the objection said.  In separate objections, Texaco Marine
Services, which owned and operated ships containing Babcock & Wilcox
boilers, and Atlantic Richfield, objected to their treatment under the
proposed plan.

McDermott International said in December it reached a settlement with
the representatives of two asbestos-related claimant groups in the
Babcock & Wilcox case.  Under the settlement, McDermott International
agreed to put 4.75 million shares of its stock and $92,000,000 in
unsecured promissory notes into a trust for the benefit of asbestos-
related personal injury claimants.


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