"fancy footwork'' and making threats to his ex-partner's wife.

The allegations came in the latest round of a court battle between Mr.

Peniston and computer consultant Mr. Robert Thomson.

Mr. Thomson is a former partner with Mr. Peniston in Bermuda Vacations Ltd., and is trying to get the company wound up in Supreme Court.

On Friday the court heard Mr. Thomson's account of his dealings with Mr.

Peniston, read out by lawyer Mr. Charles Vaucrosson.

In the document, Mr. Thomson told how he met Mr. Peniston about five years' ago and was eventually persuaded to lend him $80,000. This loan eventually led to court hearings and a judgement against Mr. Peniston of more than $103,000, Mr. Thomson said.

Mr. Thomson said he agreed to invest in Mr. Peniston's company, Bermuda Vacations Ltd. (BVL), and became a director.

He denied being hired or engaged as financial controller. He also denied ever being a director or financial controller of Mr. Peniston's companies, Bermuda Travel and Shipping Ltd. or Bermuda Excursions Ltd. (BEL).

He said BVL, which owned the glass-bottomed boat Reef Goddess , got into difficulties.

Mr. Peniston deposited a cheque from BVL to his own account rather than the account of BEL, he alleged.

"It was this deceitful transaction that ... started this downfall. When I challenged Mr. Peniston about these funds he quickly borrowed the money to repay the funds to BVL but that transaction in the winter months of 1991 started to destroy my trust in him.'' Financial statements of April 27, 1992, showed Mr. Peniston (BTS) owed BVL more than $48,384, said Mr. Thomson.

In February, 1992, Mr. Peniston acknowledged an overdraft of more than $208,500 was owing.

"To this date he has not paid any money that was due and owing by him to BVL.'' Mr. Thomson said when he refused to lend Mr. Peniston a further $6,000 or to agree with his selling a small portion of his (Mr. Peniston's) shares to Bee Line Transportation, their relationship "started to completely break down''.

Mr. Peniston did some "fancy footwork'' with the Bee Line share purchase that left them out of pocket of more than $3,700, he added. "This really got me upset since I had introduced them to him.

"When I decided not to help with further funds Mr. Peniston called my wife and threatened retaliation through the Bermuda Department of Immigration and he made it quite clear that I would never see any part of my initial $80,000 loan.

"It was around the same period I was told by the Police that Mr. Peniston had activated an old BVL bank account at the Bank of NT Butterfield and Son Ltd.

and had issued $11,000 in bad cheques. This was the last straw and I decided there and then that I should disassociate myself from Mr. Peniston as soon as possible.

"The clear and simple reason that Bermuda Vacations Ltd. is insolvent is that it did not get enough business. The actual revenue was one third of the projected revenue.

"The lack of revenue can be clearly placed on Mr. Peniston. He said he could provide the cruise ship passengers which failed to materialise when his other companies were liquidated for debt.'' Referring to his wife's purchase of the Reef Goddess , which Mr. Peniston wants back, Mr. Thomson said he was merely stopping someone buying it at a low price.

"I never acted in any way to cause any of the matters raised by Mr. Peniston in his affidavit.

"After our last company meeting in March, 1992, I refused to put any of my own money into the company to pay any of the staff since Mr. Peniston was holding onto the money that he received from the cruise ships and would not pay the money into the company bank account.

"Bermuda Vacations Ltd. does not have the money to pay any creditors, much less support any lengthy ... litigation. Mr. Peniston has a large sum of money that he owes to the company and if he throws it away by this frivolous litigation it will be to the loss of the creditors.'' Mr. Perry Trott, for Mr. Peniston, told the court another affidavit, in response to Mr. Thomson's allegations, would be forthcoming.

Mr. Trott, in court in place of Mr. Delroy Duncan, asked for the case to be adjourned. Mr. Duncan was unavailable because he was waiting for his work permit to be transferred, he said.

Mr. Trott said they expected to hear something positive from Immigration in a week.

Mr. Duncan, from England, has left law firm Hall, Duncan and Trott to join Mr.

Trott in a new firm.

Mr. Trott told the court that Hall, Duncan and Trott no longer existed. But Mr. Vaucrosson said: "I understand that Mr. Duncan will still be employed by Hall, Duncan and Trott until his transfer takes place. Hall, Duncan and Trott is still a firm and there has been no official change of attorney for Mr.

Peniston.'' Mr. Trott said Mr. Duncan had some more points to make on Mr. Peniston's behalf.

Puisne Judge the Hon. Mr. Justice Ground said the court had a very busy calendar, and he saw no reason why Mr. Trott could not make the points.

But he agreed to a final adjournment until Friday and ordered the company to bear the costs.

Mr. Llewellyn Peniston.