H&W Gets Its $31M From Global Marine

The management and Board of Harland and Wolff breathed a collective sigh of relief upon learning that the arbitration case against Global Marine was decided in its favor, mandating that GLM owes the yard more than $31 million. In the weeks leading up to the decision, management was questioning the future viability of the yard in the case of a negative ruling on its behalf.

Receipt of these monies will enable a restructuring of the company to take place with the support of the parent company, Fred.

Olsen Energy ASA. The restructuring will provide an opportunity to establish a profitable, viable and sustainable offshore and shipbuilding industry in Belfast, although, as previously advised, this will necessitate a significant reduction in the number of employees.

In this connection, the company will complete a business plan demonstrating the viability of continuing shipbuilding and engineering on Queen's' Island along with the development of Titanic Quarter under the terms of an agreement with the Belfast Harbor Commissioners.

The formalization of that agreement is a necessary part of the restructuring to provide Harland and Wolff with the basis to continue shipbuilding.

Commenting on the ruling of the Tribunal, Brynjulv Mugaas, H&W Chief Executive said: "Since first tendering the Glomar Jack Ryan for delivery on July 24, we have maintained that the yard's scope was complete in accordance with the contract and have been confident of a positive outcome to this arbitration.

Today's ruling brings to an end the deplorable and thankfully futile attempt of Global Marine to bankrupt Harland and Wolff by withholding the delivery installment due. This decision has galvanised our determination to succeed in the expected Arbitration to recover the balance of monies due by Global Marine for work completed. The claim was for $186.9 million, of which $91.3 million has been paid on account."

Maritime Reporter Magazine, page 60, Oct 2000

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