Mutual Risk Management Ltd. filed a proposed scheme of arrangement on Thursday with the Bermuda Supreme Court to restructure its debt.

If the proposal is approved, it would mark one of the final stages in MRM's efforts to extricate its ongoing captive management and brokerage business from its defunct programme insurance operations.

The proposal would affect $198 million in debt, comprising $110 in bank debt and $88 million owed to MRM debenture holders. Under the restructuring, the debenture holders would exchange their existing debt for cash, preferred stock and warrants to purchase 15 percent of the common stock of the company, as well as debt, preferred stock and 74.7 percent of the common stock of the captive and brokerage subsidiary, MRM Services Ltd., which will be renamed IAS Park Ltd.

The creditor group would own the majority of the ongoing business, while the defunct insurance units would be owned by MRM stockholders.

The proposal will be considered by MRM creditors on February 5, 2003 at the Supreme Court.

If creditors approve the scheme, MRM will then apply to the Supreme Court for an Order approving the Scheme.

In a statement, the company said: "The principle purpose of the Scheme is to restructure MRM's senior debt. The principal amount of the debt is approximately $198 million, comprised of approximately $110 million owing under the Company's credit facility and approximately $88 million owing to holders of the Company's 9 % debentures.

Under the proposed restructuring, the senior debt holders would exchange their existing debt for cash, preferred stock and warrants to purchase 15 percent of the common stock of the Company on a fully diluted basis as well as debt, preferred stock and 74.7 percent of the common stock, on a fully diluted basis, of the Company's subsidiary, MRM Services Ltd. ("MRM Services"). MRM Services (currently doing business as IAS Park and soon to be renamed IAS Park Ltd.) holds the Company's fee-based businesses."

The statement said IAS Park has approximately 300 employees with the major units in the group being the captive management division, which will operate under the IAS banner, and the insurance/reinsurance broking division, which will operate under the Park banner.

The Group will be headquartered in Bermuda where some 150 staff are located and will also have offices in the UK, the US, Cayman Islands, Amsterdam, Guernsey and Barbados.