Providence debt deal in focus on costly legal ruling

A costly court ruling yesterday put the spotlight on the terms of the debt deal that Providence Resources struck with Melody Finance late last year, as the Barryroe oil and gas explorer led by Tony O’Reilly Jnr unexpectedly lost a multi-million euro legal dispute with an international drilling company over delays in the Celtic Sea.

Providence shares were “temporarily” suspended yesterday in Dublin and London ahead of the announcement of the UK Court of Appeal’s judgement, which found in favour of driller Transocean.

Providence now faces a bill of at least $5.6m (€4.9m) — which could be the minimum of its share of a $7m bill, after the ruling found in favour of Transocean.