have set June 27 as the date of the first meeting of creditors and contributories in the liquidation of the defunct insurer.

Legal advertisements were placed in insurance journals this week saying the meeting of contributories would take place at 9 a.m. at the Hamilton Princess while the creditors meeting will follow at 10.30 a.m.

Both groups will be asked whether to appoint joint provisional liquidators Mr.

Anthony Joaquin and Mr. Gareth Hughes of Ernst & Young as a permanent liquidators and to decide whether to appoint a committee of inspection to act with them.

Mr. Joaquin said yesterday that they also intended to proceed with plans to establish a scheme of arrangement for the insurer, which was ordered wound up in December. The company's liabilities could top $100 million, he added, although a further actuarial study is planned.

In January, the joint provisional liquidators said that a cash-based reserving scheme of arrangement, similar to that already implemented in the KWELM companies liquidation, "will prove most appropriate primarily because such a scheme would afford a number of significant advantages for the creditors of BFMIC''.

BFMIC and the KWELM companies both wrote policies on the H.S. Weaver's stamp in London, resulting in multi-million dollar claims against them.

It is not known if the liquidators or creditors will proceed with any legal action against the directors of Bermuda Fire & Marine Insurance Co., who controversially sold the company's domestic business to new company BF&M in 1991, while retaining the loss-making Bermuda Fire & Marine as a separate entity.

The sale netted shareholders of the company $40 million, which creditors, including Transit Casualty (itself in liquidation), Crum & Forster, the ITT Hartford Insurance Group and the Federation of Jewish Philanthropists, say should have been retained to pay claims.

It has been reported that creditors have been restrained from action until the liquidation.

Mr. Joaquin said legal counsel retained by Ernest & Young in Bermuda and London are to advise the liquidators in the next two months on whether legal action should be brought as a result of the 1991 transaction, and against whom.