BF&M Ltd. chief executive officer Glenn Titterton denied that the 1991 reorganisation of Bermuda Fire was either secretive, or driven by fears of the company's liquidation.

Mr. Titterton's cross-examination by Clare Montgomery QC, who represents liquidators Ernst & Young, ended yesterday in a morass of objections to Ms Montgomery's questioning of the witness on the knowledge of Cooper & Lines chartered accountant David Lines, Bermuda Fire director Donald Lines and Bermuda Fire board chairman Charles Collis.

Afternoon sessions began with a review of Bermuda Fire's finance committee meeting of May 29, 1991. Ms Montgomery said: "Mr. Titterton, did (Bermuda Fire accountant) Mrs. Viera say to you the company was experiencing difficulties with receivables to the extent that it was becoming short of cash?'' "If shortage means the inability to pay claims, no,'' Mr. Titterton said.

He said he didn't believe Bermuda Fire was "short on cash'' in May, 1991.

The court heard that in a May 20 letter, Conyers Dill & Pearman lawyer John Collis asserted that for the reorganisation to be "commercially attractive'' more than 50 percent of the shares for its subsidiary, Subco, ought to be distributed by way of the dividend in specie.

Ms Montgomery suggested: "Mr. Collis made it clear at this meeting that the 51 per cent of shares was all to do with the threat of liquidation.'' "I don't personally remember that,'' Mr. Titterton said, "unless they were using a worst case scenario, as an example.'' And he said that he did not see the meeting's objective as securing the remainder of the business' assets from liquidation.

Bermuda Fire's finance committee met again on June 11 with presentations from Coopers & Lines and Conyers Dill & Pearman. Their specific concerns were the valuation of Bermuda Fire's international business, and the position of preference shareholders. Mr. Titterton did not remember specific details on the discussion of either issue.

The questioning reached a further impasse when Ms Montgomery began to ask Mr.

Titterton about David Lines, Donald Lines and Charles Collis. Cooper & Lines lawyer Ian Croxford QC, and Elizabeth Gloster QC -- who leads the corporate defence team -- repeatedly objected that the questioning strayed from direct evidence.

Puisne Judge Vincent Meerabux eventually asked: "Do you wish to sleep on it, Ms Montgomery?'', which closed the day's sessions.

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