SHIPYARD EXTRACTS GLOBAL MARINE SETTLEMENT

HARLAND and Wolff shipyard has finally won through in its bid to extract a disputed £20 million payment owed by American oil firm Global Marine.

The shipyard had taken the firm to court in an attempt to get the completion payment on delivery of the deepwater drillship Glomar Jack Ryan.

Sir Reg Empey, Minister for Enterprise, Trade and Investment, welcomed the news that Harland and Wolff was to receive the final delivery instalment: "This is very good news which will relieve a burden which has been hanging over Harland and Wolff for some time. Payment of the outstanding instalment will strengthen Harland’s position and help to re-establish customer confidence as they seek out new orders."

With jobs at the yard hanging in the balance, Harland and Wolff were forced to mount a high profile court battle to obtain the outstanding delivery instalment for the deepwater drillship.

While the ship completed in July last year, Global Marine had originally refused to accept the ship stating that it had not been completed to the company’s satisfaction.

In May, the Court of Appeal in London found that Global Marine should pay Harland and Wolff US$27 million and £3.3 million as originally awarded at arbitration. A unanimous judgement handed down from the court found in favour of the yard and restored the original arbitration award made on 14 September 2000.

It is understood that the yard has to repay outstanding bank debts, which management claim were taken out to finance cost overruns caused by Global Marine in the construction of two drillships.

It is expected that this will improve the underlying financial basis of the Belfast shipyard. (SP)