proposed to pay more than $800,000 in debts has been called "unreliable'' by his official receiver.

Mr. Mark Diel called Peniston's plan "unreliable in that the liabilities as submitted at the first meeting of creditors are now in the region of $800,000''.

He added: "The assets are estimated by the debtor at the sum of $3,860. The debtor did have further undisclosed assets of approximately $25,000. It appears that with the exception of some $1,500, the debtor has spent this sum.

"That the official receiver, given the circumstances of this case is unable to state whether or not the debtor has fairly stated his assets.'' During court proceedings in December Mr. Diel said Peniston failed to alert the official receiver when he discovered he had assets of $25,000 and $1,000.

And earlier, he had sworn an affidavit saying he had personal effects to a value less than $1,000.

Peniston was ordered by Puisne Judge the Hon. Mrs. Justice Wade to file a plan of payment or be declared bankrupt.

Peniston proposed to creditors that he would be "willing to pay into a designated account managed by creditors or through an agency such as the Bermuda Credit Association on a monthly basis, sums to be determined on the basis of extinguishing all creditors' claims''.

He said to vote him bankrupt would be "punitive'' under the circumstances.

But Mr. Diel said Peniston was proposing a 100 percent repayment of all debts with an undetermined repayment date and rate.

Nor did it deal with interest accrued, costs of the bankruptcy proceedings, the Limitation Act or any securities Peniston proposed to put up.

"In light of the above it appears highly unlikely that the Supreme Court will be in a position to approve the scheme,'' he said.

A Receiver's meeting for Creditors is scheduled to be held at Cathedral Hall on Wednesday at 3 p.m.