night when the identity of the prospective new owner became known.

News that the business is being bought by a subsidiary of Canadian-based Trans-America Corporation astonished some timeshare members and creditors.

It brought claims that the Club would still be controlled by the same interests that led to its collapse, although this was denied by Trans-America.

People's fears are based on the fact that the majority owner of Trans-America is German-Canadian financier Mr. Wolfgang Stolzenberg.

In the past, Mr. Stolzenberg has had close business links with the York-Hannover group, which owned the St. George's Club until it was put into receivership in October with debts of $79 million.

"This is just unbelievable because it seems that the same people will still control the Club,'' said one foreign creditor yesterday.

"All that's happened is a bit of paper shuffling. I can't see how this can be allowed to happen.'' And Mr. Jim Stewart, chairman of the Members' Advisory Council (MAC), which represents over 2,200 timeshare members, said: "Is York-Hannover coming back into the picture? It looks to me that the Club is going to end up in the same hands.'' This is the last thing the MAC wants since, in the past, it has criticised York-Hannover for alleged breaches of Bermuda's timeshare law and allegedly misusing using the members maintenance fund.

Trans-America president Mr. Walter Prychidny flew into Bermuda yesterday to go through the books of the St. George's Club as a prelude to a sale.

He said that Trans-America was acting as a "go-between buyer'' and would try to sell the Club at the first available opportunity.

Central Guaranty Trust Company (CGTC), the principal creditor of the St.

George's Club, had tried to sell the timeshare complex all around the world but had failed to attract a single offer, he added.

"They approached Marriott's, Hilton and others but they showed no interest,'' he said. "An advertisement was also placed in the Wall Street Journal but this, too, produced no response.

"Although Trans-America, through a subsidiary, will buy the St. George's Club, all the shares will still be held by the Trust Company and we will try to find a new buyer as soon as possible.

"We feel that this is the best way to sell the Club, given that Central Guaranty has failed to find a buyer. If a valid offer had come in from a third party, I would not be here in Bermuda.'' The Trans-America group, which has the franchise for Ramada hotels in Canada and owns, leases or manages 30 Canadian hotels, including 26 Holiday Inns, would keep on the St. George's Club as timeshare units.

The question being asked yesterday was what are the current ties between Mr.

Stolzenberg and York-Hannover boss Mr. Karsten von Wersebe, a fellow German-Canadian financier.

Mr. Stolzenberg is the former chairman and president of Castor Holdings Ltd., a Montreal-based lending institution which he formed with Mr. von Wersebe.

Castor is bankrupt with debts of around one billion Canadian dollars -- about C$200 million of which was lent to York-Hannover.

Mr. von Wersebe left Castor several years ago after allegedly falling out with Mr. Stolzenberg.

The two men publicly appear not to be on speaking terms but some investors in their failed schemes believe they still secretly do business together.

One investor, who did not want to be named, said: "This alleged rift is nothing more than a smokescreen designed to suit their money-making purposes.'' However, suggestions that the proposed deal to buy the St. George's Club was anything but above board were dismissed yesterday by Trans-America president Mr. Prychidny.

"The relationship between Castor and York-Hannover disintegrated in the 1980s,'' he said. "To my knowledge, over the last five years they have been at arms length. Mr. Stolzenberg and Mr. von Wersebe do not get on.'' The appointment of Mr. Prychidny to Mr. Stolzenberg's Trans-America company fuelled speculation that the two still do business together since he is a former executive vice-president of Mr. von Wersebe's York-Hannover Development, in Canada.

Mr. Prychidny said he had not spoken to Mr. von Wersebe since resigning three years ago.

Mr. Richard Kempe, for the receiver Price Waterhouse, said: "I do not know of any shareholding arrangements of Trans-America. I've no other comment to make.'' MAC chairman Mr. Stewart has called for Government to block the proposed sale, saying it was not what timeshare members wanted and was not in their best interests.

But Financial Secretary Dr. Walwyn Hughes said it was too early for Government to become involved since an offer had not been put before it.

"As yet, we have not received official notification of this deal and I'm sure it will have to be looked at carefully,'' Dr. Hughes said.

SALE POSSIBLE -- The president of canadian hotel SALE POSSIBLE -- The president of Canadian hotel firm Trans-America is in Bermuda to negotiate the purchase of timeshare complex the St. George's Club, above.