Settlement for Glomar Grand Banks Reached

Global Marine Inc. announced that a settlement has been reached between Global Marine Drilling Company and a subsidiary of Transocean Sedco Forex with respect to a bareboat charter for the drilling rig Glomar Grand Banks. Under the terms of the settlement, Transocean Sedco Forex will pay Global Marine $67.5 million in cash and waive its claim against Global Marine of approximately $2.0 million.

Global Marine assumed rights to the bareboat charter with Sedco Forex at the time Global Marine acquired ownership of the rig in 1997. Sedco Forex subsequently merged with Transocean Offshore and became Transocean Sedco Forex. At issue in the dispute were 1) the date of termination of the charter, 2) the condition of the rig upon return to Global Marine, and 3) Transocean Sedco Forex's liability to pay additional dayrate.

"Recognition of this settlement will not impact Global Marine's earnings," said W. Matt Ralls, Senior Vice President and Chief Financial Officer of Global Marine. "Approximately $61.0 million of the $67.5 million cash proceeds will be applied against accounts receivable and other accruals on the company's books, with the remaining $6.5 million being applied to reduce the company's cost basis in the rig."


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