A court case brought by former insurance executive Mark Hardy against Peter Mitchell as liquidator of Aneco Reinsurance Underwriting Co. Ltd. was dismissed when the plaintiff conceded that judgement should be given in favour of the liquidators.

But Mr. Hardy - who is the controlling director and shareholder of Aneco, a company which was ordered to be wound up more than a decade ago - told The Royal Gazette from the UK where he lives, that although he conceded on this matter, it is what he called "the first skirmish in a very long war."

The action is the latest in an already long legal battle centred around Mr. Hardy and the contentious and drawn-out liquidation of the Focus group of insurers - which included Focus Insurance, Forum Re and Aneco Re - dating back to the early 1990s.

In the case, which was heard by Puisne Judge Norma Wade-Miller, Mr. Hardy sought to overturn claims of debt against Aneco from several Lloyds syndicates as "wrong and/or unreasonable."

But the matter was thrown out after Mr. Mitchell's lawyer, Narinder Hargun, contested that the application by Mr. Hardy was contrary to a proposed "scheme of arrangement" between the company and its creditors.

Mr. Hardy conceded this ground of complaint but stressed that he had been unaware of the "scheme of arrangement".

The Royal Gazette understands that a meeting of Aneco creditors is slated for next month.

Justice Wade-Miller also found that the case was without merit as Mr. Hardy is not a creditor and that the only persons having a legitimate interest in seeking a review of the admission of proof of debt are the creditors of the company as persons entitled to participate in the ultimate distribution of the company's assets.

Justice Wade-Miller also found: "Aneco has over 200 creditors with total liabilities of over $100 million in debts owing. And is hopelessly insolvent."

Mr. Hardy said that his contention is that Aneco is solvent, but said he had to concede on this particular action.

In conclusion the case found: "Mr. Hardy concedes that the company can't, having accepted judgement, reject the claims. His complaint is about the conduct of the liquidators. If Mr. Hardy's only complaint is about the conduct of the liquidators, he must present that elsewhere."

The case also found that costs could be awarded against Mr. Hardy, although he opposed any award for costs against him.

Likening the process to the English Civil War, "in other words it goes on for a while", Mr. Hardy told The Royal Gazette he will take another tack and intended to mount separate legal action against the liquidators.

Meanwhile, Aneco's sister subsidiary Focus Insurance Co. Ltd., which is also in liquidation, has said that all known creditors have been notified of a first and final dividend.

Any creditors who have not received such notification, or contest the basis of calculation of their dividend, must notify the liquidator by submitting a proof of debt form to the liquidators on or before July 12, 2002.