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GLOBAL MARINE TAKE-OR-PAY SETTLEMENT

 GLOBAL MARINE TAKE-OR-PAY SETTLEMENT
 HOUSTON, May 8 /PRNewswire/ -- Global Marine Inc. (NYSE: GLM)


announced today that its wholly owned subsidiary, Challenger Minerals Inc., has settled its long-standing take-or-pay litigation with Transcontinental Gas Pipe Line Corporation, a subsidiary of Transco Energy Company, for $55 million.
 Under the settlement, Challenger Minerals will receive $20 million in cash, $20 million in the form of a secured note payable in eight quarterly principal payments of $2.5 million beginning in October 1993, and up to 1.5 million newly issued shares of common stock of Transco Energy. The actual number of shares of Transco Energy to be received by Challenger Minerals will be equal to $15 million divided by the average price of the Transco shares during the month of January 1994, subject to certain adjustments, and will not in any event be less than 750,000 shares. The company stated further that under the settlement, the shares will be placed in escrow until February 1994, and that Challenger and its affiliates will be restricted from engaging in certain activities regarding Transco or its shares. The closing of the settlement is expected to occur prior to May 30, 1992.
 Global Marine's president and chief executive officer, C. Russell Luigs said, "This settlement represents a favorable resolution to a long-standing dispute. The settlement will result in net income of approximately $55 million, or 48 cents per share, which will be recognized in the second quarter and will more than double our current shareholders' equity. Additionally, the settlement should significantly improve our liquidity over the next two to three years."
 Houston-based Global Marine is one of the industry's largest international offshore drilling contractors, with 26 mobile rigs deployed worldwide. In addition, the company offers turnkey drilling services and has interests in oil and gas production. The company employs 1,900 people and has its headquarters at 777 North Eldridge Road, Houston, Texas, 77079-4416. The telephone number is 713-596-5100.
 -0- 5/8/92
 /CONTACT: John G. Ryan or Jerry C. Martin, or (investors) David A. Herasimchuk, 713-596-5100, all of Global Marine/
 (GLM) CO: Global Marine Inc. ST: Texas IN: OIL SU:


SH-CK -- NY023 -- 8024 05/08/92 10:42 EDT
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Publication:PR Newswire
Date:May 8, 1992
Words:363
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