An application by a British businessman, Mr Kevin Milner, to vary a freezing order granted against former Bula Resources (Holdings) Ltd chairman Mr Jim Stanley was adjourned yesterday at the High Court.

Mr James O'Callaghan, for Bula Resources, sought the adjournment in the context of a conditional settlement of legal proceedings which, counsel said, had been entered into between Bula and Mr Stanley but was dependent on two future events proceeding.

It is understood the settlement involves Mr Stanley paying a "contribution" of £90,000 (€114,276) to Bula. Earlier this month, the High Court also directed Mir Oil Development Limited to transfer unsold Bula shares issued in favour of Mir to Bula Resources.

Mr O'Callaghan said Bula's claim against Mr Stanley and Mir arose out of an oil deal in Russia in 1995 which was negotiated by Mr Stanley. Bula initiated proceedings in 1997. The Minister for Enterprise, Trade and Employment had also appointed a barrister, Mr Lyndon MacCann, to investigate the circumstances surrounding that oil deal. In his report, Mr MacCann found that Mr Stanley was the beneficial owner of Mir and that he had profited by £660,000 sterling (€1,079,137) from the sale of Bula shares transferred to Mir. Mr O'Callaghan said the High Court had granted two freezing orders against Mr Stanley restraining him from disposing of certain assets. As a result of those orders, certain shares held by Mr Milner were frozen, Mr O'Callaghan said.

Mr Milner wanted certain shares discharged from these court orders. Some 370,000 Ovoca shares were affected. Counsel said there were other shares in Mr Milner's name which, he said, Mr Milner accepted were held beneficially by him for Mr Stanley.

Mr David Barniville, for Mr Milner, said his client's shares had been frozen since September 1998 and he had been unable to deal with them. Mr Milner was not party to any legal action and there was no claim against him but he had been caught by the freezing orders.

Counsel said the application to vary the freezing orders had been before the court on five occasions previously. While he saw the common sense of what Mr O'Callaghan was arguing, he could not consent to an adjournment where there was a possibility the settlements might not proceed. Mr Justice O'Neill said he would adjourn the application peremptorily against Bula to January 19th.