up to $12.4 million shares from BF&M.

They will be able to buy 1 million new issue shares at $12.40 each, regardless of the stock price at that time.

Market predictors believe that, while stock closed trading in 1995 at only $6.50 when trading was ceased on the BSX, in three years time that shares in BF&M will be worth more than $12.40 each.

The liquidators have the option to not take the deal. So if the shares are worth less than $12.50 then the deal will not go ahead. If, however, the shares are worth at least this much, then the deal will go ahead, and could make the liquidators a great deal of money.

This will mean that BF&M could receive a $12.4 million cash boost and the liquidators will be able to sell the stock at a market price which they hope will exceed the purchase price.

Any money raised will go towards the debts of Bermuda Fire. BF&M have the option to buy back the shares at the time and have placed various restrictions on the deal such as a call option requiring Bermuda Fire to sell the shares options to BF&M and a restriction ensuring that BF&M remains not less than 60 percent Bermudian.

BUSINESS BUC