destroy him, the Supreme Court heard yesterday.

He accuses Robert Thomson of conspiring to drive him out of business and out of existence, said Puisne Judge the Hon. Mr. Justice Ground during bankruptcy hearings.

Mr. Thomson is trying to have Mr. Peniston, his former partner in the glass-bottom boat firm Bermuda Vacations, declared bankrupt.

Mr. Peniston is fighting the attempt, saying Mr. Thomson has an ulterior motive.

He says Mr. Thomson told Bermuda Vacations staff he wanted to bankrupt him and take over the company.

He alleges that while a director of the company, Mr. Thomson was plotting to set up a competing business and take over Bermuda Vacations' boat.

Yesterday Mr. Peniston asked for four sworn statements to be considered as evidence of Mr. Thomson's alleged hostility towards him.

But Mr. Justice Ground turned down the plea because Mr. Peniston had missed the deadline for producing them.

It emerged a main reason for Mr. Peniston's delay was that he nearly lost his lawyer, Mr. Delroy Duncan, because he couldn't pay his fees on time.

Mr. Duncan said he was forced by "commercial reality'' to begin moves to withdraw from the case.

Mr. Peniston testified that fighting the winding-up of Bermuda Vacations last year had demanded his attention and cost him money.

He added he was struggling on his own, with his reputation under threat.

Unlike Mr. Thomson, he said, he did not have "unlimited funds''.

"It's very difficult to continue to enjoy the liquidity and income levels that one would normally enjoy,'' he told the judge.

"It's been difficult to have ready cash available on an ongoing basis in the face of these circumstances.'' He had also found difficulty getting hold of witnesses' evidence over the holidays.

Questioned by Mr. Andrew Martin, for Mr. Thomson, he denied selling property or borrowing to pay Mr. Duncan.

"It was merely a matter of getting the money that was owed to me personally,'' he said. This had been difficult over Christmas.

He also denied leaving the Island with his family over the holidays.

Bankruptcy moves had caused his family a lot of stress and "marred substantially the quality of our Christmas experience''.

Mr. Martin said Mr. Thomson claimed a debt of $103,000.

Mr. Peniston had alleged Mr. Thomson was "out to get him'', he said.

But some might say it was the essence of business to "get one over everyone else'', he added.

Mutual trust and confidence were bound to evaporate between businessmen if a $100,000 debt was not repaid, said Mr. Martin.

Motive was irrelevant and there was nothing to justify the court refusing Mr.

Thomson's bankruptcy petition.

Mr. Duncan said a fax sent to Mr. Thomson from Reef Roamers Ltd., while he was a director of Bermuda Vacations, suggested he was also a director of the rival company.

If Mr. Thomson had not acted the way he did, Mr. Peniston would have enough money and Bermuda Vacations would still be in business with its boat, Mr.

Duncan added.

Mr. Thomson had "engineered'' Mr. Peniston's inability to pay the debt. Mr.

Peniston wants to put up some security and pay by instalments, Mr. Duncan said.

The case continues next week.