lodge a claim by the end of May, according to the company's joint liquidators.

The company, which is in compulsory liquidation, began to get into difficulties after a string of catastrophes hit in 1997.

Now creditors have until May 31 to stake their claim, according to a Supreme Court ruling.

A legal notice printed by the joint liquidators, John McKenna and Gareth Hughes of Ernst & Young in Bermuda, said: "All creditors are required to lodge with the joint liquidators on or before May 31.'' Any creditors failing to do so will not be allowed to their share of any monies after the liquidation of assets is completed.

Rumours about the impending collapse of New Cap Reinsurance Corp began circulating at the beginning of 1999.

And the Registrar of Companies in Bermuda put the company in compulsory liquidation last year.

In 1998 Kit Astwood appointed inspector Mark Smith, a partner with Deloitte and Touche, to look into the company's affairs.

The Bermuda-based subsidiary had four employees based on the Island.

Mr. Astwood said at the time: "New Cap Reinsurance Corporations Holdings Ltd.

(a Bermuda holding company) publicly stated that its financial condition was negatively impacted by catastrophe claims and reserve strengthening.

"In very properly regulated insurance environment, there are times when officials must step in to have a closer look to ensure everything is in order.

This is one of those times.'' New Cap Reinsurance Corp. Holdings suspended the underwriting activities at its Bermuda subsidiary, New Cap Reinsurance Corp. (Bermuda) Ltd., in 1999 after total capital fell below the required level of $100 million.

Deadline set for creditors to stake claim In Bermuda to be admitted as a Class 4 insurer a company must have at least $100 million in capital and surplus.

A statement from the company revealed at the time that on the basis of New Cap's projected results, the group overall expected to have capital of approximately $100 million for the 1998 year.

"However, after statutory adjustments, the capital and surplus of the Bermudian subsidiary will fall below the $100 million required amount under the terms of its Class IV licence,'' the statement said. It said an operating loss of about $90 million for 1998 was anticipated.

The company was hit by catastrophe claims of $41.5 million in addition to its $14.8 million loss in the first half of 1998 and had to add to its reserves in the second half of 1998.

New Cap said the large loss was due to claims from business written in 1997, the company's first underwriting year.

The company was also hit by an extraordinarily poor year in terms of the number and magnitude of catastrophes.

New Cap was incorporated in Bermuda in 1996 and has shares traded on the Australian Stock Exchange.