Bula Resources is appealing a decision of the London High court yesterday to strike out proceedings which the company was taking against a London firm of solicitors. The court also ordered Bula to pay the legal costs of the London firm.

The decision was taken by the High Court after Bula failed to lodge a banker's guarantee for £250,000 sterling in favour of Gouldens solicitors, as security for the firm's costs. The security had to be lodged by 5 p.m. yesterday.

Gouldens solicitors provided legal advice to Bula regarding Bula's investment in a Russian company, Aki Otyr, in 1994. The deal ended up costing Bula £8 million. Bula has spent £367,000 in legal costs to date pursuing Gouldens, but was unable to lodge the required banker's guarantee because of difficult financial circumstances.