Financial Centre Limited (BFCL), the proponents of the scheme continue to obtain letters of intent from would-be tenants.

Interest in tenancy has already, in fact, outstripped supply, even though the principals believe that there are some in the community who like to see the project fail.

But already there are more than a hundred personal and corporate investors for the scheme. The plan has already won major approval from one large local company.

Argus Insurance Company limited, between September and April, acquired 132,940 of the outstanding 826,266 convertible preferred non-voting shares.

Many of those shares were purchased early on when they were being offered for $4. And they last traded last month at a high of $10, already posting a substantial gain, if only in financial theory.

Managing Director Mr. John Sainsbury pointed out that as other people come aboard, the relative size of Argus stock will diminish. At the end of it, he said, Argus would have no appreciably significant stake in the venture.

Another domestic insurer has expressed interest and was represented during a packed meeting held at the Bank of Bermuda last Thursday to drum up support from local business.

Mr. Glenn Titterton, President and CEO of BF&M Limited, said "We are currently looking at the situation and reviewing the proposals.'' One large Bermuda company that has decided against involvement is the Bank of Butterfield. Chief operating officer and president Mr. Michael Collier said: "They have been trying to get interested investors for some time. We are not considering it at this time.'' Companies expecting significant contracts for their involvement in the building of the financial centre and companies which have been promised contracts pending price agreements have been quick to take a stake in the venture.

Christiani & Nielsen Ltd. is one such company. The Thai firm, with global operations, will work with Sea-Land Construction on the building of the physical structure. They purchased 222,222 shares in the scheme in May.

The Canadian firm, Univex, will work with the Bermuda company Saber Ltd. on the electrical work. Univex was aware of this in April and cashed in for at least 90,000 shares. And Bermuda Air Conditioning has also taken a stake in the project.

Right now there are two forms of pure equity. Including the existing 826,266, there will be 1.5 million preferred shares issued which will convert into common shares at the end of next year. There will be an additional two million common shares, 125,000 of which have already been issued.

Although it appears that 3.5 million shares will be the total, the directors could in the future move to increase the amount of authorised shares.

The next round of financing, scheduled to be a participating debenture, would carry equity warrants to the tune of $40 million. After 1997, debenture holders would be able to convert them to common shares.

Under discussion right now is that $40 million of financing. A decision may be made as to whether or not some of it should be a purer form of equity, such as preferred shares.

BFCL President Mr. Michael Winfield said: "The directors of BFCL must protect the rights of the existing shareholders.'' Meanwhile, Mr. Winfield said that interest in leasing office space was very high.

"We have interest that has exceeded the availability of the proposed office space. We are moving forward now with letters of intent, some of which we already have. I can't say just how much in square footage that covers right now, but we are very pleased,'' he said.

Mr. Winfield still brushes aside the rumour campaign that he has had to endure.

"We have had problems with people putting out rumours, people who want to see us fail, probably so that they can come in afterwards and pick up the pieces,'' he said.

"There are rumours that I'm making a fortune out of this, when the fact is that in the end, Winworth Ltd. will have five percent of the fully diluted stock. In other countries, it would be normal for the founders to obtain total stock of at least 15 to 20 percent.''