former directors who sat on the finance committee, accountants Coopers & Lines, and legal advisor Conyers Dill & Pearman for damages over the company's collapse in 1993.

The liquidators are attempting to seize ownership in BF&M Ltd. from current shareholders who received a share dividend in the company. Bermuda Fire was split in two in 1991 with newly-created company BF&M Ltd. holding the profitable domestic business.

At the time Bermuda Fire shareholders received a special share dividend in BF&M. Bermuda Fire went into liquidation in 1993 owing about $450 million to international creditors.

The liquidators claim the 1991 split was an illegal transaction because the five former directors, their accountants and legal advisor knew or suspected Bermuda Fire was insolvent after they stripped it of assets to create BF&M, a profitable local insurer.

The five former directors are William Cox, Donald Lines, Greg Haycock, Michael Collier and Charles Collis -- now deceased. The liquidators are claiming damages against Mr. Collis' estate. Mr. Collis was also chairman of the board.

Cooper & Lines, the predecessor to partnership PricewaterhouseCoopers, was Bermuda Fire's accountants. Conyers Dill & Pearman was the company's legal advisor.

Up to 1,000 BF&M shareholders who formerly held shares in Bermuda Fire could lose their investment if the liquidators win in Supreme Court.

BUSINESS BUC