of a new city hotel, at least in the near future.

BFCL president the Hon. Michael Winfield was off the Island last night and unavailable for comment. However, in a letter to shareholders, he indicated that while BFCL was ready to proceed with plans for an office building, a hotel development to be operated by the Four Seasons chain was now on the back-burner.

The suspension of plans for a hotel comes less than two weeks after the company won a court battle against the Princess Hotel parent comapny, Hamilton Properties Ltd., permitting, in principle, the entire development.

BFCL has not totally abandoned the hotel plan, as the company retains the right to submit detailed drawings for a hotel and private apartment complex to the Development Applications Board at a later date.

The letter states,"This phased approach will enable us to move ahead quickly with the office portion of the project.'' The letter also says that corporate re-structuring will in the new year include a common share rights offering to raise required additional equity. In addition, the outstanding convertible preferred shares will be converted to common shares with voting rights.

As a consequence of the restructuring, BFCL has sought and been granted a suspension of trading of the company shares on the Bermuda Stock Exchange.

See Business, Page 13