Jenkins could lose hotel over Yukon gov't debt

The Yukon government is taking former party leader and cabinet minister Peter Jenkins to court to collect on his debt to the territory.

Jenkins, who quit the government last week, could now lose his Dawson City hotel over his outstanding loan, which now totals more than $300,000.

• FROM NOV. 28, 2005: Stories differ on Jenkins' departure from Yukon Party

Documents filed in Yukon Supreme Court Monday claim Jenkins guaranteed a loan the government gave to his hotel in Dawson City 15 years ago.

Interest on the loan has now pushed the original $250,000 to more than $300,000.

The government says it is not prepared to wait while the total goes higher, and is asking for an order to sell Jenkins' hotel to recoup the money it's owed.

Jenkins has not filed any response with the court. He says his lawyer is dealing with the matter and he is refusing to comment further.

He says his lawyer is talking with lawyers for Dana Naye Ventures, the company hired to collect the loans, and he says those talks are continuing.

Meanwhile, the government has filed documents asking for $114 a day in interest until Jenkins pays in full. It is also asking the court to sell the hotel if Jenkins hasn't paid back the money owed within the next six months.