Newstead Belmont Hills Golf Resort went into receivership yesterday after Butterfield Bank recalled a multi-million dollar loan.The luxury Paget property will continue to run, although receivers Ernst and Young have not ruled out selling some, or all, of its assets to recoup the loan.Butterfield Bank would not say how much the outstanding loan was for, or how long the hotel property had defaulted on it.A bank spokesman said the company did not take the decision lightly but it was in the best interest of its shareholders and stakeholders.The resort which boasts 104 hotel rooms, 74 residential units, an 18-hole golf course and world-class spa was the first new large luxury hotel to open on the Island in 30 years.Hollywood stars Michael Douglas and Catherine Zeta-Jones were at the ribbon cutting as owner Kevin Petty said the new development ushered in a tourism renaissance for the Island in 2008.Yesterday, Mr Petty said he was shocked when he was told the hotel was in receivership at 8am.The telephone call came after 18 months of negotiations to restructure the financing of the property. However, negotiations broke down neither side will say why last Tuesday and the bank served Belmont and the related companies with a formal demand to repay the debt in full.“I was not expecting the bank to make a demand for repayment at this time and I was certainly not expecting to come to work [Monday] and find that my first appointment was to be with people from Ernst and Young who have been appointed private receivers under the terms of Belmont's debentures (documents that either create a debt or acknowledge it) with the bank.“I am in a state of shock and I am taking advice as to what the next steps may be for myself personally, the companies, the creditors, the fractional owners and the resort's employees.“It is a most unfortunate situation but I am determined to do what I can to protect my employees and keep the resort operating.”Mr Petty added he would continue to try and raise capital and repay the loan, saying he has already invested ten years of his life and millions of his own money.“I have sacrificed everything to keep this project alive and I don't intend to simply walk away and lose it all if I can possibly avoid it,” he said.“I will continue to work with the bank and receivers and hope that this is the shortest receivership in history and the project ultimately succeeds down the road.”An Ernst and Young spokeswoman said: “Operations will continue to run under the management of the receivers. The receivers do not anticipate any immediate impact on day-to-day operations of the businesses.“The receivers will focus on reorganising and restructuring operations to facilitate business continuity with a view to a sale of the assets as a going concern.”A bank spokesman said they were the primary mortgage lender for the property. A spokeswoman for Ernst and Young said they were not in a position to comment on any additional mortgages yesterday.The two restaurants on the property, Blu and Beau Rivage, are independently owned and not a part of the receivership.When asked why the bank recalled the loan, a bank spokesman said: “The bank is exercising its legal right to place into receivership the assets of Newstead Belmont Hills Shuttle Ltd, Newstead Belmont Hills Hotel Ltd, Belmont Hills Golf Course Management Ltd and Belmont Hills Property Ltd, which were put up as collateral for various credit facilities extended by the bank.“The bank took this action following default on payments of principal and interest owed by the companies on loans advanced by Butterfield.“The decision was not taken lightly, but Butterfield feels it is appropriate at this juncture, and the decision to place the assets into receivership is in the best interests of the bank's shareholders and all other stakeholders.”In 2009 the bank had $94.3 million worth of credit provision on “hospitality loans” for two properties.By November 2010 a bank executive said the figure had risen to almost $114 million.Previously the bank had declined to name either of the properties that had secured the loan. Newstead has long been speculated as one of the properties and a bank official confirmed it yesterday.Newstead's receivership is the second in the past twelve months. In July last year Pink Beach Club was put in receivership.