Television station ZBM last night apologised for a report of allegations of misconduct against ex-hospital engineer Neil Crane.

And the Bermuda Broadcasting Company station accepted there were no grounds for its report, claiming hospital sources said he had been fired for misconduct.

The climb-down by the station -- which led its broadcast last night with a lengthy apology to Mr. Crane -- came after his lawyer Juliana Jack demanded a retraction and "substantial damages'' from the station for libel.

Ms Jack could not be contacted for comment last night on whether Mr. Crane will still proceed with the legal action.

Mr. Crane is also suing the Bermuda Hospitals Board for unfair dismissal. Mr.

Crane said he had been told by hospital bosses they were unhappy with his ability to manage projects and that they often came in over budget.

A letter from Ms Jack to hospital officials, however, said Mr. Crane had not been previously warned that his employers were unhappy with his work.

On Tuesday, the hospital confirmed Mr. Crane had never been under investigation, but admitted managers accepted his resignation the previous Wednesday.