businessman Mr. Llewellyn Peniston by sacking him as its local agent.

RCCL has given the contract for its Nordic Prince cruise ship back to John S.

Darrell travel firm.

It is an ironic twist since Mr. Peniston contributed to Darrell's near collapse when he quit as a director in 1986 and set up Bermuda Travel and Shipping with all of its cruise business.

A spokesman for RCCL would not go into details about the reasons for the switch.

He added: "In any business relationship it's prudent to review where you are and where you want to be. We did that and decided to go in a different reaction.'' It is understood, though, that adverse publicity surrounding Mr. Peniston's other business problems may have prompted the decision, which was made with no notice.

Mr. Peniston himself believes that could be the case. He said yesterday: "No principal is comfortable in an environment where their business partners are the subject of unrelenting media glare, and we've pleaded for a respite in this regard and can only hope at some stage that this will be achieved.'' Mr. Peniston is being investigated by the Police over his business dealings, although he has not been charged.

His financial situation has deteriorated sharply over the last six months during which Supreme Court has ordered him to pay $776,000 to settle four lawsuits.

Over the past 12 months two of Mr. Peniston's firms, BT&S and Bermuda Excursions, have both gone bust with combined debts of around $2 million, while another, Bermuda Vacations, has stopped operating.

Bermuda Travel Tours, which held the agency for RCCL, is believed to be Mr.

Peniston's only firm still operating.

The firm still runs some shore excursions for passengers aboard Chandris Cruises, which carries more than half of Bermuda's annual cruise visitors on the Horizon and Meridian vessels, and acts for Cunard, whose ships make a handful of visits to Bermuda each year.

Mr. Peniston said yesterday that there would be no layoffs at BTT, which employs two people.

He said the transfer of the agency was mutually agreed between BTT and RCCL "in the best possible spirit''.

He added: "Insofar as John S. Darrell is concerned, we wish them every success. I should declare there is absolutely no difficulty between ourselves and John S. Darrell's management. We've already communicated a very positive signal of cooperation.

"We're not anxious to re-hash historical facts as they involved a different combination of personalities. Suffice to say that the climate in terms of relationships is much better today than it was some years ago.'' John S. Darrell president Mr. Don MacPherson was also reluctant to go over the past.

"I don't want to rake up this mess again,'' he said. "I don't know what the reason was for RCCL changing agents. But the situation has come full circle right back to where it was and we're happy with that.'' Mr. MacPherson had not long been general manager of Darrell's when Mr.

Peniston walked out on the firm to set up Bermuda Travel and Shipping.

Mr. Peniston took with him most of Darrell's cruise ship accounts, including RCCL, Bermuda Star Line and several smaller contracts.

Four years later when Darrell's financial situation had become critical, Mr.

MacPherson said Mr. Peniston's departure had been the "final blow''.

He told The Royal Gazette in August, 1989: "This was a tremendous shock to say the least and all our plans for the future were in complete disarray. The financial losses quickly gained momentum.'' Mr. MacPherson said yesterday that the winning back of the RCCL contract had a special meaning to him.

He said: "It not only signals the company's return to the regular weekly cruise agency market after almost seven years, but its also our 125th anniversary this year.''