Graeme Outerbridge, the outgoing Mayor of Hamilton, has chosen the evening of the municipal elections to break his silence on the Par-la-Ville car park fiasco.

Mr Outerbridge released a joint statement, in conjunction with Robert McKellar, of Argyle Ltd and Argyle UAE Ltd, to give his version of events in which the default of an $18 million loan guaranteed by the Corporation of Hamilton resulted in the car park falling into receivership.

Sen Michael Fahy, the Minister of Home Affairs who took over stewardship of the corporation at the end of January, produced a lengthy missive detailing the loan deal that Mr Outerbridge and Mr McKellar challenge.

“I was invited to attend a meeting in London with developer Mr Michael Maclean to have a discussion with a potential senior funder,” Mr Outerbridge said in the statement. “I had attended a meeting earlier in the year in New York for the same purpose but no agreement could be structured between the potential funder and the developer at that time. Both trip expenses were to be recharged to PHRL [Par-la-Ville Hotel and Residences Ltd].

“I contacted the corporation secretary [Ed Benevides] who was already in London on unrelated business and requested he attend the meeting of October 16 as well. I wish to reiterate that there were no agreements made or contracts signed at the October 16 meeting. Upon return to Bermuda, we reviewed information on Argyle, Mr Robert McKellar, associated banks as well as the funding models discussed at the meeting. On October 23, we received information from Mr Maclean’s lawyer that an agreement had been reached with Argyle to provide the senior funding and we received a draft copy of the Trade Agreement along with a draft copy of the

escrow release letter.

“We were informed by Mr Maclean’s lawyer that PHRL had assigned Michael and Yasmin Maclean as senior escrow agents to allow for a smooth transfer of funds in the very short period to try and meet the maximum return before the end of December 2014. The same

account was being used as in the initial drawdown and it was confirmed that the alternative funding model met the requirements of the option in the escrow agreement. It was at this point that it was revealed that having taken legal opinion PHRL had created a Trust which would engage with Argyle to provide the capital funding.

“We were not aware that Argyle had been informed that these were private funds and that Argyle was not privy to the discussions of the escrow funds and the reasoning for the formation of the Trust. However, it is clear from subsequent communications that Argyle was not aware of the movement of funds between the escrow and the private trust. Once the funds were released from escrow in New York, we were advised that the lenders, MIF [Mexico Infrastructure Finance], had been informed to the extent that the contract with Argyle would permit. It was with some surprise to receive allegations on December 3, 2014 that the funds were not being used for the purpose they were intended and that PHRL had breached their agreement with MIF.

“Since that time a number of ex parte rulings and a number of statements have been made in the public realm, none by me or Argyle until now. In every conversation, we have reiterated that the money was not lost and that Argyle had been attempting to get the funds, resulting from the now cancelled agreement, repatriated to Bermuda. It was also noted that the continued assault of ex parte rulings and multiple court actions had also completely halted any and all attempts to repatriate the funds in a manner that would release Argyle and the CoH from any liability. In virtually every occasion, this information was ignored.

“I would like to thank Mr Robert McKellar for his unflinching response to our inquiries and for all his efforts to repatriate the funds and release the CoH from the liability of the loan guarantee.”

• For the full statement, click on the PDF file under “Related Media”.