lawsuit surrounding Waxoyl Ltd., its bank, and its directors, remains nowhere in sight.

Bermuda's Court of Appeal was to decide this morning on appeals filed by lawyer Mr. Mark Diel, representing the Bank of Butterfield, the Bank of Butterfield Executor & Trustee Co. Ltd. (BETCO), and Waxoyl directors Mr.

Stephen Whitaker Kempe, Mr. Kenneth Wallace Morgan, Mr. Anthony James Saunders, and Mr. John David MacKenzie Dobson.

Waxoyl Ltd., a Bermuda-registered exempt rustproofing products company, went into liquidation four years ago after being unable to pay debts.

Waxoyl's liquidator, Deloitte and Touche, is seeking an estimated $4.7 million in damages from the appellants.

Mr. Diel is appealing a decision by Chief Justice the Hon. Austin Ward last October which granted access to just two of 80 particulars of the company.

He is also appealing a decision made by Puisne Judge the Hon. Mr. Justice Meerabux made 18 months ago on the late filing of an affidavit.

Mr. Justice Meerabux had refused to accept the affidavit on the grounds it was filed too late.

Mr. Saul Froomkin, representing the liquidator, charged yesterday the directors failed to fulfil their responsibilities. Further, he said the bank was in breach of mandate and BETCO in breach of contract.

Granting the affidavit-related appeal would assist in providing the court with the "full story and we feel it is relevant,'' argued Mr. Diel.

Mr. Froomkin argued there has "to be an explanation'' why the affidavit was delayed for the court to grant leave to appeal.

"There was no explanation as to the delay, even today, there is no explanation as to the delay,'' said Mr. Froomkin.

With regard to the company's particulars, Mr. Froomkin said, "Virtually all the documents we have are virtually their documents.'' Appeals Court Judge Sir Henry DaCosta agreed with Mr. Froomkin that granting such an appeal without reason would be a "recipe for chaos.'' From 1986 to 1991, not a single meeting was held except one where the directors resigned in August 1991, according to Mr. Froomkin.

Recorded minutes of alleged meetings have been proven false according to the statement of defence, Mr. Froomkin added.

"We have a situation where the directors did nothing for five years and Mr.

(Henry) Gold looted the company,' 'he said.

Mr. Gold, a director of Waxoyl, also oversaw the Gold Trust, whose assets included shares of Waxoyl.

The directors "did absolutely nothing (but) get paid, they did get paid,'' he added.

"They did not get paid, that is why we are claiming them as creditors,'' responded Mr. Diel.

Mr. Diel said the amount the creditors and contributors, his clients, are seeking is not a substantial amount and "denied all allegations'' made in court.

Sir James Astwood, president of the Bermuda Court of Appeals, Sir Alan Huggins, and Sir Harvey DaCosta are presiding over the matter.