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Hardy seeks annulment of bankruptcy order

A twice bankrupt former Bermuda insurance executive, who faces arrest in Bermuda, is seeking to be discharged as a UK bankrupt.

Mark Gregory Hardy, who operated a Bermuda insurance empire that went bust more than six years ago, has given notice as a bankrupt that he has settled his debts in full and now seeks annulment of the bankruptcy order.

And the Bermuda liquidators of his failed insurance empire appear to have consented.

One of the liquidators, David E.W. Lines of Coopers & Lybrand Bermuda, told The Royal Gazette yesterday, "There's a settlement agreement, which he has signed with us (as the liquidators for Focus Insurance group of companies) and the first and second trustees in bankruptcy to try to bring this to some conclusion. "In that settlement agreement, he undertakes to do a number of things. If he fulfills those obligations, then the outcome will be that his bankruptcy would be probably rescinded.

"But that is not up to me. That is up to the first and second trustees. But I'm aware of it and I have signed off on it.'' In papers filed last week before the UK High Court of Justice, Mr. Hardy stated that he entered into a resolution of disputes agreement November 24.

And provision has been made for the payment in full, together with applicable interest, of all creditors "whose debts are valid claims upon the estate.'' Declared bankrupt both in June 1993, and in April 1996, by the Colchester County Court, he has applied to the High Court of Justice for an order to annul the bankruptcy on the grounds that all the debts and expenses of the bankruptcy have been paid or otherwise secured to the satisfaction of the Court.

The application is to be heard February 27. Any creditor who has not yet proved their debt, or any objector who is against the annulment, must make representation to the court before February 13.

The Englishman from Suffolk gave notice to the court January 9.

Mr. Hardy was the boss of Focus Insurance, Forum Re and Aneco Re, companies put in the hands of liquidators between 1990 and 1992. He has been in a messy fight with the Bermuda liquidators and their lawyers ever since.

One key issue was the disappearance of nearly $20 million, which liquidators alleged was taken by Mr. Hardy, an allegation he had denied.

In January 1995, the Bermuda Supreme Court ordered that a warrant of committal be issued against Mr. Hardy, to show cause why he should not be punished for contempt of court.

Local officials can seize and arrest the former chartered accountant and take him before the court to explain why he should not be sentenced for contempt.

The decision came eight months after civil proceedings against an unrepresented Mr. Hardy were halted and the matter was referred to the Attorney General's chambers.

Annulment of bankruptcy order sought He arrived on the Island at that time, knowing that he could face arrest as a result of an earlier court judgment.

The proceedings were initiated by Mr. Lines and Peter Mitchell of Coopers & Lybrand Bermuda, the joint liquidators of Mr. Hardy's failed Focus group of insurance companies.

The joint liquidators wanted to have Mr. Hardy declared in contempt of court for "scandalising the court'' in a letter campaign against former Chief Justice Sir James Astwood.

Sir James, now the President of the Court of Appeal, had previously rendered judgments against Mr. Hardy in related matters. Mr. Hardy was less than complimentary about Sir James, and Bermuda, in widely distributed letters.

He blamed the liquidators for making him bankrupt and the courts for pushing his insurance empire under. His bankruptcy also caused him to be stripped of his chartered accountant's designation.

Justice Meerabux determined in 1995 that the allegations of "scandalising of the court'' were proved beyond a reasonable doubt.

The liquidators' lawyers successfully applied to have the matter returned to court after it was clear the Attorney General would not proceed with prosecution.

Lawyer for the liquidators and Saul Froomkin Q.C. of Mello, Hollis, Jones & Martin, said at the time: "If Mr. Hardy returns (to Bermuda) I hope the court will deal with him appropriately, due to the very serious allegations he's made.'' Mr. Hardy was blocked from seeking the same annulment he now seeks by Focus liquidators in June 1996.

He has represented himself against top legal counsel here and in the UK in a litany of court skirmishes.

Mark Hardy