A writ for $7.45 million has been filed against the Bank of Butterfield, four current or former officers of its subsidiary, the Bank of Butterfield Executor and Trustee Company, and Betco itself.

The action has been brought by Waxoyl Ltd., which is currently being liquidated by Mr. David Anfossi, of accounting firm Anfossi & Butterfield.

Waxoyl is seeking $2.838 million against the Bank of Butterfield and a further $4.615 million against Betco and Messrs. Stephen Kempe, Ken Morgan, Anthony Sanders, and John Dobson.

All but Mr. Dobson are still officers of Betco. Waxoyl was a Bermuda-registered company involved in the provision of proofing substances to the automotive industry on a worldwide basis.

It was put into liquidation in 1992.

Lawyer Mr. Andrew Martin, who is acting for Waxoyl, said there were two main elements to the case.

"Firstly, there is a claim against the Bank of Butterfield for breach of the company's bank mandate,'' he said.

"And the second element is for breach of fiduciary duty on the part of directors and officers of the company to manage the company's assets and affairs in accordance with their statutory responsibilities.'' Mr. Peter Rodger, group legal counsel for the Bank of Butterfield, said: "We are still waiting for more details of the action.

"Our only comment is that we will defend the action vigorously.''