Belfast shipyard to be paid in full for Glomar drillship
The legal battle between shipyard Harland & Wolff PLC and Global Marine Inc. over delivery price for the deepwater drillship Glomar Jack Ryan was resolved Wednesday with confirmation that the US drilling company would pay the Belfast shipyard the final multimillion-dollar installment for the vessel.
Darius V. Snieckus
LONDON, June 20 -- The legal battle between shipyard Harland & Wolff PLC and Global Marine Inc., Houston, over delivery price for the deepwater drillship Glomar Jack Ryan reached resolution Wednesday with confirmation that the US drilling company would pay the final multimillion-dollar installment for the vessel.
Harland & Wolff, following last September's High Court judgment, is to receive $27 million and £3.3 million, plus interest backdated to Sept. 28, 2000, from the special purpose company BMBF (No. 12) Ltd., the registered owner of the vessel, which is leased and operated by Global Marine.
"We welcome the fact that the owner has now decided to comply with the original ruling of the arbitration panel, as recently upheld by the Court of Appeal, by paying the monies due," said Harland & Wolff CEO Brynjulv Mugaas.
Mugaas said that although the settlement would be paid 11 months later than originally scheduled, the sum would "significantly improve" Harland & Wolff's overall financial position and allow it repay its outstanding bank debts.
"This will remove a major financial uncertainty which has existed on the part of potential customers over the past year," said Mugaas.
The shipyard filed a £133.2 million claim against Global Marine in 1999 after the two companies disagreed over the scope of the work and delivery specifications during the construction of the drillship Glomar CR Luigs, the Jack Ryan's predecessor, at Harland & Wolff's Queen's Island shipyard.
Contact Darius V. Snieckus at firstname.lastname@example.org