The Wall Street Journal also reported that a lender group hired Jones Day as counsel and is seeking a financial adviser, while a bondholder group retained Houlihan Lokey for financial advice.
The company's shares fell sharply following a WSJ report that it engaged a turnaround consultant, AlixPartners, in an effort to improve its cash flow.
The stock rebounded today when MDR said it had received unsolicited inquiries about possibly buying its Lummus unit. The company said it retained Evercore to help sell Lummus.
"The process of exploring strategic alternatives is part of our ongoing efforts intended to improve McDermott's capital structure, and we plan to use the proceeds from any transaction involving Lummus Technology to strengthen our baance sheet," David Dickson, McDermott's chief executive, said in the statement.
McDermott shares jumped 27% to $2.01 on Friday.