have quit, and are being replaced.

Provisional liquidators for Bermuda Fire & Marine Insurance Company Ltd., the company facing liquidation, are set to firm up arrangements for new Bermuda lawyers.

Mr. Saul Froomkin and Mr. Andrew Martin of the firm Mello, Hollis, Jones and Martin wrote to the liquidators some three weeks ago advising them of the firm's intention to withdraw from the case.

There was no indication just what led to the decision of the law firm to retreat from the case.

Insolvency partner with Ernst & Young in London, Mr. Gareth Hughes, said: "Our Bermudian legal advisors have concluded that they do not wish to represent us in relation to the Bermuda Fire liquidation.

"As a consequence of that, I can also confirm that arrangements for alternate counsel will be finalised within the next few days.'' "We as provisional liquidators are continuing our investigations into the affairs of Bermuda Fire & Marine. We are in the process of developing a scheme of arrangement to deal with the settlement of its liabilities.

"Those major tasks are proceeding in accordance with timetables laid down and agreed with our informal creditors committee. And we don't anticipate that our timetables and progress in the provisional liquidation will be adversely affected by having to change counsel in Bermuda.'' Mr. Hughes put a scheme of arrangement for Mentor Insurance Company Ltd.-in-liquidation together in February 1993 and had previously been seconded to Bermuda to run Mentor for liquidator Mr. Charles Kempe in 1988 and 1989.

Mr. Hughes is joint liquidator in the Bermuda Fire and Marine Company Ltd.

matter with Tony Joaquin of Kempe & Whittle, who was off the Island and unavailable for comment.