The Bermuda Supreme Court has appointed a liquidation committee for the IPOC Fund and affiliated companies, with a view to dividing up their remaining assets by November this year.

The controversial Bermuda-based fund did not contest a winding up order that was approved by Judge Ian Kawaley in May this year.

A statement issued by IPOC yesterday read: "The court's decision also affirmed the formation of an advisory board of IPOC creditors and investors, a measure taken during the first meeting of the fund's creditors in Paris on August 14.

"With the liquidation process moving forward, the fund has proven that it has no outstanding debts."

Dudley Cottingham and Chris Morris, of the Bermuda offices of Arthur Morris Group, were appointed provisional liquidators by the Supreme Court in May.

Mr. Cottingham was not available for comment yesterday.

Mark Diel, of Bermuda law firm Marshall, Diel & Myers, who has represented the IPOC Fund in their court proceedings, declined to comment.

IPOC has made headlines around the world and has caused reputational damage to Bermuda amid allegations that it was a $1 billion money-laundering vehicle for former Russian Telecommunications Minister Leonid Reiman, claims Mr. Reiman has consistently denied.

IPOC has always insisted that lawyer Jeffrey Galmond is the true sole beneficiary of the Fund. IPOC reiterated its position yesterday.

"Danish businessman and lawyer Jeffrey Galmond is confirmed to be the only beneficiary of the assets," the statement said.

"Galmond is to receive full control over all IPOC assets and those of affiliated companies after the fund is liquidated. Liquidation is to be completed by November 2008.

"Jeffrey Galmond is a well-known Danish lawyer and businessman. He is the owner and CEO of J.P. Galmond and Co. and IPOC."

Finance Minister Paula Cox instructed the Registrar of Companies to file the petition to wind-up IPOC and eight related companies in January 2007. The move was aimed at protecting Bermuda's reputation as a jurisdiction.

Bermuda also received around $22.5 million as its share of $45 million confiscated from IPOC in a criminal prosecution in the British Virgin Islands, where three IPOC-owned companies were domiciled.