investors in the troubled firm.

He said the current attempt to wind up the company could cause millions of dollars worth of damage.

But following a court ruling in his favour he would be demanding at least $8 million security, to cover damages if his case was proved that winding-up petitions against Televest and its owner Telecheck should never have been brought.

About 500 Bermudian investors are together owed more than $8 million by Televest.

Telecheck operated more than 10,000 Signature and Travel Card credit cards.

Supreme Court yesterday saw the first round in the companies' battle to stay in business.

After legal debate, the case was adjourned for at least 21 days for more evidence to be gathered, with both sides claiming successes.

Mr. Hall represents Telecheck directors Mr. Richard Burns, Mr. Thomas Burns and Mr. Christopher Donnachie.

He told the court Telecheck and Televest were not insolvent. And he attacked the appointment of provisional liquidators Mr. Charles Kempe and Mr. Gil Tucker.

"Those who were appointed to the position of provisional liquidators have shut my clients out of their building, have closed the doors down, have written letters to my clients telling them they are fired, and -- from information coming to us -- have gone about the business of selling off the assets of the company, which hasn't even yet been wound up.'' There had been an "unseemly rush'' to shut the doors before Christmas "for reasons which can only be described as sinister at best'', said Mr. Hall.

"Investments in Televest Ltd. are gravely imperilled -- not by my clients, as the local media have been led to suggest -- but by the actions of the petitioners and those advising them.'' He said funding for the Signature card scheme came from Televest. Funding for Televest was meant to have come from the Channel Islands firm Sarnia Mutual Investments, now in liquidation.

When Sarnia "reneged on its promises'', funding had came from local investors.

Mr. Hall asked the Chief Justice, the Hon. Justice Ward, to order that there should be secured undertakings as to damages.

"At the end of the day we're going to show millions of dollars of damage and somebody's got to pay for it.'' But for the current proceedings there would be no climate for a run on Televest's shares, the attorney said.

Mr. Justice Ward agreed there should be an undertaking from British firm Price Waterhouse, liquidators for Sarnia, who began the legal chain reaction that led to the Televest crisis.

But he rejected Mr. Hall's demand for undertakings from the local provisional liquidators or their lawyers Appleby, Spurling and Kempe.

And he put on hold Mr. Hall's application to have Mr. Kempe and Mr. Tucker removed as provisional liquidators.

Mr. Nigel Howcroft, lawyer for the provisional liquidators, defended their appointment.

He said Sarnia was claiming some $4 million from CTRAK, a dormant Telecheck-related company also facing winding up proceedings.

It was very unlikely that damages would be claimed, he said. After the case, Mr. Hall said: "We will be asking for a minimum of $8 million security.

"That's the minimum that we currently estimate we're going to need in order to protect the investors of Televest against the unnecessary winding up of a solvent company.

"These companies do not have to be wound up. Televest has no debts -- it's obviously not insolvent. Telecheck had no debts that were current that it could not pay.'' If Price Waterhouse did not give an undertaking the case would end, he said.