existence of secret hearings in the Bermuda Supreme Court relating to claims being brought by the joint liquidators of the Bermuda Fire & Marine Insurance Company Ltd. (BFMIC) against certain common shareholders of domestic insurer BF&M Ltd.

BF&M has announced that their common stock has been temporarily suspended as a direct result of the story's publication.

The company released a prepared statement which said "as a result of the unfortunate publication of this article, the directors of BF&M Ltd. have decided that it is in the best interests of BF&M's shareholders and the investing public that the common shares be temporarily suspended pending resolution of these issues by the court, or further announcement''.

The published disclosures, was in contravention of an order from the court, BF&M said.

US magazine, Business Insurance, published in their October 23 edition an article that BF&M said disclosed the existence of proceedings being held in private concerning "the validity of the joint liquidators' claims against the shareholders concerned''.

They said: "The claims arise out of the 1991 reorganisation of Bermuda Fire.

BF&M Ltd. believes these claims are ill-founded.'' The company expects an early resolution to this issue, although it is understood that the adjourned hearings cannot resume until possibly November.

The statement assured that the suspension will not affect the payment of dividends to common shareholders, nor the business or policyholders of the company, and is being carried out with the full agreement of the Bermuda Stock Exchange.

The preference shares in BF&M Ltd. will continue to be traded on the Exchange, "unaffected'' by the proceedings and by the suspension of the common shares, the company said.

Three weeks ago, Bermuda Fire liquidators filed a Supreme Court writ against BF&M Ltd., several of its subsidiaries, together with some former directors, lawyers and accountants of Bermuda Fire and Marine.

The legal action came about a week after BF&M president and CEO, Mr. Glenn Titterton, had announced the company's "strong performance'' and increased half-year profits of $4.9 million.

This week, liquidators and lawyers declined to comment on the matter.