Former Bermuda Fire director Gregory Haycock yesterday denied that he was attempting to drag the company's financial advisors into the alleged negligence charged in the civil dispute over the 1991 formation of BF&M.

The suggestion came from Ian Croxford QC, who represents accounting firm Cooper & Lines, during his continued dissection of Mr. Haycock's witness statement for the Bermuda Fire case in Supreme Court.

Afternoon sessions began with a look at a March 29, 1988 board meeting at which Bermuda Fire chairman Charles Collis suggested a "three-pronged course of action'' as damage control for the company's problematic business with underwriters Weavers of London. Mr. Collis suggested reinsurance, commutation and restructuring -- separating the local business from the international side -- to restore confidence in Bermuda Fire.

"Each of these was prompted by, and only by, the uncertainty and losses on the international business?'' said Mr. Croxford. Mr. Haycock denied this.

Mr. Croxford then took issue with Mr. Haycock's use of the passive voice in his witness statement -- specifically, that the idea of splitting the company "grew'' at this time. "How and in what context, so far as you saw in 1988, did it grow?'' he asked. Mr. Haycock said he believed it was first referred to by director Donald Lines. "I can't give you chapter or verse how it developed,'' he said.

Mr. Croxford turned to a remark by then-chief executive officer Cyril Rance on a report from actuarial advisors Tillinghast which showed a small amount of deterioration on the Weavers business for 1988. Mr. Rance pointed out that there had been no allowance made for bad debt or possible pollution claims exposure. Mr. Croxford said: "Mr. Rance was pointing out that however good or welcome the news of the report was, Tillinghast didn't address these issues.'' "I in my own mind had concluded there was no significant material exposure to pollution by the company,'' Mr. Haycock replied.

Bermuda Fire's finance committee met on April 11, 1990, at which Mr. Rance mentioned the idea of approaching insurers Sun Alliance for possible insurance cover. Mr. Haycock, in his witness statement, said that if management, in conjunction with the auditors, approved such a move, they would obtain it.

"Is that not just an example of you trying to drag the auditors in?'' Mr.

Croxford charged. Mr. Haycock again denied the suggestion.

The case continues today.

BUSINESS BUC