The Bermudian liquidator of the scandal struck Manhattan Investment Fund has made an appeal for creditors of the fund to temporarily halt any legal proceedings lodged against it.

And the joint liquidators, appointed just last week in the Supreme Court, have also appealed for creditors to come forward and contact them. So far 10 writs have been filed in the Supreme Court in Bermuda against the fund, its organisers and the Bank of Bermuda as its banker.

The hedge fund, which was registered in the British Virgin Islands but was administered and audited by Bermuda companies, admitted in January that it had lost $500 million after previously claiming it had made massive profits.

The scandal was unearthed after Deloitte and Touche LLP, the Bermuda auditors of the fund withdrew approval for the fund's financial statements from 1996, 1997 and 1998.

A subsequent investigation by fund administrator and local Ernst & Young affiliate Fund Administration Services (Bermuda) Inc, revealed the extent of the losses and accused the fund's managers of misrepresentation.

The Bermuda Registrar of Companies took the Manhattan Investment Fund to the Supreme Court to officially wind up the fund last week.

In January and February 11 separate writs have been filed at the Supreme Court in Bermuda against the fund, its administrators, the Bank of Bermuda as the trust's bankers and Michael Berger, the man behind the scandal. So far claims total $4.762 million in Bermuda alone.

One of these writs was issued by the registrar of companies and related to the winding up and appointment of liquidators.

Over 250 investors bought over 2.5 million shares in the company. Among those who bought into the fund were a number of high profile multi-mangers and institutions.

The joint liquidators -- Malcolm Butterfield of KPMG Bermuda and Anthony McMahon of KPMG London -- have written to each of the 10 creditors listed at the Supreme Court.

In the first report to creditors the liquidators state: "In response to these proceedings in Bermuda the joint provisional liquidators wrote to all the plaintiffs and explained to them the basis on which the liquidators have been appointed and the fact that as a matter of Bermuda law, the appointment of the liquidators gave rise to an automatic statutory stay of proceedings against MIF (save with the leave of the Bermuda Court).

Appeal for creditors "The liquidators also suggested that there was no point in these plaintiffs continuing with the proceedings for the time being and that the liquidators would report to all creditors in due course.'' The liquidators have also liaised with the US receiver, met with her in New York and have agreed in principle to co-operate with each other and have handed over the books for the fund managers Fund Administration Services (Bermuda). The books are 27 boxes of information and records.

The KPMG team have also asked the firms accountants, Deloitte and Touche, to hand over all their books and records in relation to Manhattan Investment.

The liquidators have asked that creditors contact them at KPMG offices in London or Hamilton to assist them with proceedings. And the liquidators have called a meeting in Genevea on March 28, 2000 at the President Wilson Hotel, Quail Wilson, for the creditors to be able to talk to the liquidators on how their investigation is proceeding.