potential buyer of the prized real estate site despite news they have secured financial backing.

The news came last night from John Sainsbury, the managing director of Argus Insurance, which owns the derelict property through Winson Holdings Ltd.

Winson Holdings Ltd. took over ownership of the site from Bermuda Financial Centre Ltd. -- which tried for three years to raise money to develop the site with a hotel, offices and condominiums -- after it was unable to pay loans.

And shortly after the Senate passed a bill on Wednesday, which allows exempted companies ACE Ltd. and EXEL Ltd. to sidestep Bermuda's 60/40 ownership rule and take over the land, the BFCL announced it had verbal confirmation of financial backing to the tune of $125 million.

BFCL president Neville Conyers said on Wednesday that he was trying to set up meetings with Government and ACE and EXEL about reaching a compromise.

Mr. Sainsbury said he was sceptical about the news.

Over the past three years BFCL had tried to raise money for their plans, but in the end commitment to a deal always hinged on varying conditions.

"I assume the latest one is no different,'' said Mr. Sainsbury.

He added that Argus had an agreement in principle with ACE and EXEL which ran through to March 31 -- and could be extended if necessary.

ACE Ltd. and EXEL Ltd. had agreed to buy out Winson Holdings from Argus if the bill passed and planning permission was given under the agreement.

Mr. Sainsbury said: "We entered the agreement on good faith and it would be bad faith to negotiate with someone else. Essentially it has to play out.'' He said he had spoken with the BFCL president and had told him that the only avenue he had was to talk with ACE and EXEL and try and persuade them to walk away from that agreement.

Mr. Sainsbury said this was unlikely to happen.

ACE and EXEL were looking for permanency and this was the route they had chosen, he said. They were no longer interested in being tenants.

If they were they could make other arrangements as they were in comfortable situations now.

But he said he felt ACE and EXEL "have their eyes on the ball'' and were concentrating their efforts on the planning process which was the second part of fulfilling their agreement.