The amount claimed from developer Par-la-Ville Hotel and Residences Ltd and the Corporation of Hamilton by Mexico Infrastructure Finance LLC is a total of $17,803,715.99, according to a draft agreement seen by The Royal Gazette.

Par-la-Ville Hotel & Residences borrowed $18 million as a bridging loan from lender Mexico Infrastructure Finance LLC, which subsequently disappeared. Par-la-Ville car park — prime real estate long expected to be developed as a hotel — was put up by the Corporation of Hamilton as collateral for the loan, but after the failure to repay that loan by the developer, the property is now in the hands of the KPMG receivers.

The draft agreement between Mexico Infrastructure Finance LLC, Par-la-Ville Hotel and Residences Ltd and the Corporation of Hamilton dated January 2015, states that “the Borrower and the Guarantor are in default under the terms of the Credit Agreement and the Guarantee dated 9 July 2014 (respectively) having failed to pay upon demand the entire loan of US$18 million made by the Lender, together with interest and costs to the Lender...”

The draft agreement is signed for Mexico Infrastructure, but not for Par-la-Ville or the Corporation of Hamilton. It is not known if one or both of those parties eventually signed the document.

It does state that Mexico Infrastructure will give the borrower and the guarantor until 31 January 2015 before taking enforcement action.

That amount includes the principal of $18 million and default interest of $243,715.99. It also takes into account $500,000 the document says was not removed from the escrow account, where the funds resided until they were transferred from the Bank of New York Mellon.

It was a term of various agreements between the parties that $500,000 should remain in the escrow account, according to other documents this newspaper has seen.

But the draft agreement document states: “The Borrower will immediately pay to the Lender the sum of US$1.2 million.”

It also states: “In addition, the Borrower will immediately provide to the Lender all documentation, satisfactory to the Lender, related to the Argyle Financing including, but not limited to, the underlying land documentation, the trust agreement, the latest account statements, wire transfer records, credentials and track record of Argyle, and any other relevant documents that indicate and support the type of investment and instructions for investing the funds provided by the Borrower to Argyle, or any other party.”

The lender also demands that Par-la-Ville will “Provide back up (including receipts, invoices, etc) of all payments made from the proceeds of the drawdowns under the Credit Agreement.”

In return for this, Mexico Infrastructure said they would not take action against the borrower or the guarantor until February 1.

The draft agreement also states that borrower agrees that the lender has the right to appoint a receiver over the Par-la-Ville property.