Libya has declined to meet a deadline for a $540 million compensation payment to the families of the 270 people killed in the bombing of Pan Am Flight 103, the lawyer for the families said Friday. Libya declined an offer to extend the deadline, which had been set for Thursday, according to James Kriendler, of a New York law firm. The government of Libyan leader Moammar Gadhafi was apparently annoyed by what it considers the Bush administration's slow movement in lifting sanctions against Libya.