Harland and Wolff receives disputed cash

Belfast's Harland and Wolff shipyard announced tonight that it had finally received more than £20 million sterling it has been…

Belfast's Harland and Wolff shipyard announced tonight that it had finally received more than £20 million sterling it has been owed for nearly a year by an American customer.

A spokesman said Global Marine had paid 27 million dollars and £3.3 million sterling - plus interest on the money dating back nine months - into their bank account before close of business today.

The yard has been fighting for the money since last July. It was the final instalment on the second of two sophisticated oil drill ships built for the Texas based company.

Global refused to pay claiming the vessel was not ready on time or up to standard. The shipyard challenged them at an arbitration hearing and was awarded the money.

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But it took another nine months of court action before appeal court judges in London again ordered Global to pay up.

The shipyard announced last night that Global had said it was dropping plans to challenge the ruling in the House of Lords and would pay the money today.

However the resolution of the row does not end the dispute between the two companies.

Harland and Wolff, who lost £32 million last year, claims it is owed a further £130 million for specification changes ordered by Global during construction of the two vessels.

That claim is likely to also go to arbitration and it could take another two years to reach a conclusion.

Nevertheless the money paid today will enable the yard to pay off its bank debt and "significantly improve" its overall financial position, said chief executive Mr Brynjulv Mugaas.

PA