McDermott International Inc. investors knew they were investing in a faltering business when they extended $1.7 billion in rescue financing last month. They didn’t know the oil-and-gas engineering company had been notified it was under Securities and Exchange Commission investigation. McDermott didn’t tell investors about the SEC’s investigation until after the ink had dried on the financing deal, believing the probe wouldn’t have a “material adverse effect” on the company and didn’t need to be disclosed, a person familiar...

Source: Wall Street Journal November 13, 2019 00:10 UTC