extract $2 million in payments owed to the company by a Florida-based purchaser of a subsidiary.

The court battle could potentially delay Millennium's decision to cease operations and distribute its assets to shareholders. Millennium trades on the Bermuda Stock Exchange.

David Mobley of Maricopa Investment has defaulted on $2 million of the $4 million the company owes Millennium for the purchase of US subsidiary Attitude Network. Maricopa agreed to purchase Attitude, a computer gaming company based on the Internet, in February last year.

Maricopa has paid $2 million of the purchase price but was unable to come through with the third payment of about $1 million. After settlement discussions broke off, Millennium filed a suit in Atlanta, Georgia for the remaining cash.

Millennium president and chief executive officer Peter Durhager said the company still holds all the shares of Attitude Network as security until the purchase is completed.

Meanwhile Millennium's Bahamas-based subsidiaries are in the process of being merged with KPMG Bahamas. Millennium owns Digital Systems (Bahamas) Ltd. and Internet (Bahamas) Ltd. The two companies provide Internet, computer systems integration and data management services.

Mr. Durhager said Millennium want to divest itself from ownership in the companies by the end of the year by selling out to investors.

Earlier this year, after the Bermuda Telephone Co. Ltd. purchased Millennium subsidiary Logic Communications Ltd., shareholders agreed in June to sell off the remaining operations of the company.

Millennium received about $8 million for Logic and made an initial distribution of $5 per share, or $7.1 million, to shareholders. The decision to sell of assets was made after the company board decided the trading price of Millennium's stock was not representative of the value of the company.

Millennium International, formerly BSL Holdings Ltd., was incorporated in May 1994.

COURTS CTS