Penrose delay ups Equitable agony

THE crucial Penrose report into the Equitable Life disaster faces yet another delay, prolonging the ordeal of policyholders anxiously waiting to hear whether they have any chance of compensation.

News of the latest hold-up came as nine former non-executive directors went to the High Court in an attempt to throw out a £3.3bn lawsuit for negligence brought against them by the new management of the collapsed mutual.

The new top team, led by chief executive Charles Thomson, is understood to be frustrated at the latest delay of the key report by Lord Penrose, a Scottish judge.

Hugh Burns, secretary to the inquiry, said yesterday that the process of 'Maxwellisation' - where those criticised are given the right to reply - is not yet finished.

Lord Penrose had initially hoped to have completed his report by the end of June. He then suggested it would be ready by the end of the summer. Burns said: 'We are very close to completing.'

Lawyers acting for the nine former non-executives - including Jennie Page, a former director of Railtrack and the Millennium Dome - told Mr Justice Langley that the case should be thrown out as a waste of time and money before it gets to trial.

Former executives who oversaw Equitable's lurch into disaster - including Roy Ranson, Alan Nash and Chris Headdon - are also being sued by the mutual.