receivership.

And yesterday, Police sources confirmed detectives are continuing an investigation launched some time ago into the disappearance of company funds.

No-one could say yesterday if the two events are connected.

Kempe & Whittle partner Gil Tucker has been appointed receiver under the powers contained in a fixed and floating charge debenture held by the Bank of Butterfield.

The receiver would in such circumstances move in and seize the assets of a company with a view toward satisfying the debt to the creditor.

It is understood that Busycomm's assets may have been seized as early as last Friday evening.

The receiver is also required to examine the operations of the company and explore options for the preservation and enhancement of the company's assets and viability.

Mr. Tucker said he is being assisted by the company's management and added there may be more to say soon to "minimise the uncertainty for the company's employees, suppliers and customers''.

President Keith Clifton was not available for comment yesterday.

Close to ten of the nearly 30 staff are no longer employed by the firm, which remains open for business servicing existing clients. No new business is being solicited.

Generally, when a company is put into receivership, it has no employees. Those remaining automatically become employees of the receiver and retain their jobs at his leisure. The receiver would normally be satisfied as to who in the firm is needed to continue the operation of business.

Meanwhile, the computer industry has been aware of inquiries being made by the Police fraud squad involving the company's finances and a former employee. No one could say how much money is involved. The employee was said to have left the Island.

A Police spokesman would only say yesterday: "Police have received a complaint in regard to an employee of Busycomm Ltd. which the fraud squad is investigating.'' Industry observers conceded some surprise that the bank moved in at this stage, because of a plan developed between Busycomm and industry consultant Spectrum Technologies Ltd. that would have led to a new, umbrella holding company with four subsidiary companies.

The bank's decision to protect its interests comes just six weeks after the announcement of the proposed strategic alliance. It was expected to have brought significant new business prospects for the companies involved. Such an alliance now appears unlikely.

One of the planned subsidiary companies, Corporate Internetworking Services Ltd. (CIS), was to offer Internet subscriber services, and in conjunction with another group company, Bermudanet Ltd., would have created the first local competition to Internet (Bermuda) Ltd., providing another access to the Internet.

But those analysing the latest development concede Busycomm ran into another recent problem. Their troubles of late include their acquisition of the then-lucrative Apple Computer dealership from MCS Ltd.

Soon after that deal was consummated, Apple ended its worldwide policy of exclusive regional representation, unwittingly pulling the rug right out from under Busycomm.

Suddenly Busycomm was competing with other dealers in product for which it had paid exclusive rights for in Bermuda.