complex has chronic financial problems itself, it was revealed last night.

Central Guaranty Trust Company's debts are so huge that it is subject to the largest bail-out in Canadian Government history.

The Government stepped in to prevent the bank's collapse and the costly mess which would have ensued.

As a result of a huge sweetener by Government, Canada's fifth biggest bank, Toronto Dominion, has agreed to purchase CGTC and its 154 branches for 125 million Canadian dollars.

Toronto Dominion will take on CGTC's assets of C$9 billion and deposit liabilities of C$11 billion.

But Canada's Government will effectively indemnify Toronto Dominion against all Central Guaranty's commercial loans, which includes CGTC's US$9 million term loan to the St. George's Club.

It was the default of this loan which led to CGTC announcing on Wednesday that it is seeking for a receiver to be placed in charge of the 65-unit St.

George's Club.

Business journalists in Canada said yesterday that federal regulators have severely restricted CGTC's activities over the last 12 months because of its poor financial state.

"The federal regulators ordered them to do something or else the business would be liquidated,'' said a journalist for the Financial Post, in Toronto.

"The rescue package is the most expensive in the federal agency's 24-year history.'' Despite the high price of saving the bank, it would have cost even more to liquidate CGTC, with some estimates running at around C$10 million.

Although the sale of CGTC is not expected to be finalised until the end of the year, The Royal Gazette was told that it will definitely go ahead.

CGTC is owned by a similarly-named holding company, Central Guaranty Trustco, which has debts of around C$400 million, according to Canadian business journalists.

A little over a year ago, the parent company's assets were worth in the region of C$14 billion but the figure has dropped to around C$11 billion, or C$9 billion after bad loans are taken out.

The holding company's debts are not part of the sale.

CGTC is expected to announce over the next few days who it wants to appoint as receiver of the St. George's Club, which is owned by the collapsing York Hannover group.

It is understood that local accounting firm Gray and Kempe, which represents Price Waterhouse in Bermuda, may be appointed.

Tourism Minister the Hon. C. V. (Jim) Woolridge said yesterday: "I have met with the Central Guaranty Trust Company and they have given assurances which I'm confident will lead to a life-saving ticket for the operation.

"Central Guaranty will take over the Club and will continue to finance it and keep it operational.''