Belvedere Insurance Co. Ltd. was placed in liquidation Friday at a hearing before the Supreme Court.

Malcolm Butterfield of KPMG Bermuda and Tony McMahon of KPMG London have been appointed joint provisional liquidators of the company. In July GTE Reinsurance Co. applied to the Bermuda Supreme Court to have Belvedere wound up.

Registrar of Companies Kymn Astwood, as the official receiver, was appointed interim provisional liquidator by the Court. GTE's petition was adjourned pending the outcome of arbitration between GTE and Belvedere.

The arbitration was over a $9 million disputed bill that Belvedere is claiming for purported underwriting management and run-off services performed for GTE Re stretching back to 1981.

In a previous, Royal Gazette story GTE's lawyer stated that the company's petition was based on findings made by Puisne Judge Richard Ground, in a previous civil action that Belvedere owed GTE Re money.

In a press release on Friday, the joint provisional liquidators said the arbitration preceedings were settled on September 22.

"The effect of the settlement is that Belvedere is insolvent on any objective basis,'' they stated.

At the hearing on Friday, the court was shown letters by some creditors who wrote the Official Receiver requesting the winding up of the company.

COURTS CTS