The Irish Stock Exchange (ISE) has cancelled the listing of Bula Resources from the close of business yesterday.

The cancellation follows the eight-month suspension of the shares as the company sought to put itself on a sound financial footing by recouping money owed to it by parties in Libya and Bahrain.

But the ISE's patience with Bula finally ran out yesterday.

"For the eight months ending December 6th, 2002, the company failed to clarify its financial position and failed to satisfy the exchange that it would be able to do so at any definitive date in the foreseeable future," a statement from the stock exchange said.

Bula said last night that while it had no working capital to meet its current commitments, it believed that in the event of a liquidation, neither creditors nor shareholders would obtain any significant return.

As a result, it intends to continue to work to recover the $1.5 million (€1.49 million) placed in 2001 with the Al-Thamer establishment in Bahrain.

The company's chief executive, Viscount Torrington, said last night that "a measure of agreement has been reached" although there was "nothing hard and fast as yet".

However, attempts to secure $1.2 million (€1.2 million) from a shares issue to two Libya-linked companies have come to nothing to date. "The withdrawal of the ISE listing may somewhat reduce the possibility of obtaining these funds and the board believes that it should now pursue a strategy which is not dependent upon the receipt thereof," Bula said.

Instead, it plans to enter into negotiations to sell part or all of its Libyan interests to a substantial Malaysian organisation with which it is in contact. This could lead to a joint-venture arrangement between Bula and the Malaysian group, Bula said.

"Should these endeavours prove successful, the board believes that there is a reasonable expectation that creditors could be paid in full and that value could be preserved for shareholders," Bula said.

In such an event, it would seek to regain its listing at an early date, it added.

Meanwhile, Bula's 40,000 small shareholders are left holding shares that are effectively worthless as they can no longer be traded.

One market source said last night that all that was left for them was the "hope value".

Bula has been plagued by difficulties in recent years. It was the subject of an inquiry some years ago into share dealings involving a former chief executive, Mr Jim Stanley.

Former Taoiseach Mr Albert Reynolds subsequently took charge of the company, becoming chairman in March 1999.

But Bula went through three managing directors during his period with the company which ended when he did not go forward for re-election at a stormy annual meeting earlier this year.

Viscount Torrington took over in September but his attempts to put the company's difficult past behind it have so far been unsuccessful.