The future of Belfast's troubled Harland & Wolff shipyard looked brighter last night after it announced that a US customer was finally paying well over £20 million sterling (€33 million) to it following a year-long legal fight.

The yard said the pay-out should give potential customers the confidence to do business with it.

US oil exploration company Global Marine refused to pay the money - the final instalment on the second of two sophisticated oil drill ships - last July. The Texas-based company claimed the vessel was late and not up to standard.

Harland & Wolff went to arbitration last September and won an order for the money to be paid. It amounted to $27 million (€32 million) and £3.3 million.

Global in turn went to court and overturned the arbitration decision but it was reversed on appeal by the shipyard recently.

However, instead of receiving the money, it was notified Global Marine was appealing to the House of Lords.

The yard said last night that the appeal had been dropped and the money - plus interest since the end of September last year - would be paid to it by close of business today.

Shipyard chief executive Mr Brynjulv Mugaas said he was pleased Global had finally decide to pay up and halt the appeal to the Lords.