a chance to pay off his debts, the Supreme Court was told yesterday.

But Puisne Judge Mr. Justice Ground said it appeared the businessman was "stringing the court along''.

"It does come very late in the day,'' said the judge, who noted Mr.

Peniston's bankruptcy hearing began on December 23. "On the very last day of this very protracted proceedings ... this is the first time that any mention of a full (payment) was made.'' Mr. Robert Thomson, Mr. Peniston's former partner in the glass-bottom boat business Bermuda Vacations, has petitioned to have him declared bankrupt over a $103,000 debt.

Mr. Justice Ground reserved his judgment until Monday at 9 a.m. If an affidavit is filed before then showing Mr. Peniston can pay all his debts, and Mr. Thomson is offered what he is owed, "I will consider that fresh issue,'' he said.

Mr. Delroy Duncan, lawyer for Mr. Peniston, argued that Mr. Thomson had an ulterior motive in taking the court action after succeeding in having Bermuda Vacations wound up last year.

Mr. Thomson wanted Mr. Peniston declared bankrupt to eliminate him as a competitor and assure he could not challenge his former partner's "unlawful conduct,'' Mr. Duncan told court.

Mr. Thomson was "guilty of using the bankruptcy proceedings as an instrument of oppression,'' and the petition should therefore be dismissed, he said.

But Mr. Andrew Martin, lawyer for Mr. Thomson, dismissed Mr. Duncan's claims as "smoke and mirrors'' designed to "obscure the fact that (Mr. Peniston) has committed an act of bankruptcy and is unable to pay his debts.'' Much has been made of the assertion that Mr. Thomson was a director of a competing company, Reef Roamers Ltd., at the same time he was a director of Bermuda Vacations, Mr. Martin said.

But, "it is no breach of the law to be the director of two companies which are in competition with one another,'' Mr. Martin said. "It would put the lawyers, bankers, and accountants of Bermuda in a very difficult position, if that were to be the case.'' Bermuda Vacations sold its glass-bottom boat The Reef Goddess at public auction, Mr. Thomson bought it, and set up another business, Mr. Martin said.

"That's it.

"There is absolutely no fact or matter which could possibly support the very serious allegations of fraudulent, or alternatively oppressive, or alternatively underhanded conduct.'' Mr. Duncan said if the court did not accept his arguments for dismissing the petition, it should give Mr. Peniston a chance to pay up. To appoint a receiver would do the businessman "irreparable harm,'' even if he was not ultimately found to be bankrupt, he said.

Mr. Peniston is selling personal assets valued at $875,000, and liens against the assets total only $700,000, he said.

But Mr. Martin cited two other court judgments won against Mr. Peniston by Sen. the Hon. Pamela Gordon and the Minister of Finance for debts totalling $176,864, "which completely wipes out (his) equity''.

Mr. Duncan countered that his client had reduced his debt to Sen. Gordon by $10,000, and to the Minister of Finance by $90,000.

Any affidavit filed before Monday would have to show Mr. Peniston was able to pay all of his creditors, Mr. Justice Ground said.