A new company is being set up to run the closed eco-resort at Daniels Head.

The former Canadian Navy complex in Sandys has been closed since April, 2002 when its owners, San Diego-based developers Excel Legacy, went into liquidation.

But a new company, IRC-Sandys Limited, has applied this month to be incorporated to lease the site from landlords Bermuda Land Development Company (BLDC) and run it as a tourist operation.

The people behind the new company could not be contacted for comment yesterday and details of their plans are not known.

According to a legal notice, the people behind the company are the trustees of the ADD Family Trust and the trustees of the Thomas H. and Ann A. Childers Family Trust.

The trustee of the ADD Family Trust is named as the Fiduciary Partners Trust Company. Catherine Evans Urban, Ann A. Childers and John N. Childers are listed are trustees of the second trust.

Mello Jones and Martin, lawyers for the new company, did not return calls by press time yesterday seeking comment.

Patrick Jones, the chief executive of BLDC, would only say: "Negotiations are still ongoing and we are not at liberty to discuss details until they are concluded."

The eco-resort was a first for Bermuda when more than 100 tented rooms, some overlooking the water, were built.

It was opened in 2000 as a cheaper holiday for visitors than the rest of the Island's hotels, but by April, 2002 it had gone into liquidation.

Malcolm Butterfield of accountants KPMG, who was appointed receiver of the resort for Bank of Butterfield two years ago, was not in the office yesterday and could not be reached for comment.