Bermuda Industrial Union (BIU) and Pembroke Hamilton Club (PHC) president Chris Furbert has denied claims the Union has called in the $1.2 million it loaned to the iconic sports club.In 2001 PHC borrowed $1,202,778 from the BIU to cover costs for the installation of a new lighting system and work done to their to Warwick ground.The loan was to be paid back over a 17-year period at an annual interest rate of seven percent via monthly payments of $10,075.93.The club has yet to pay principal on the loan and for the past several years has only paid on the interest in monthly payments of $7,000.PHC’s executive met with the club’s membership during a semi-annual general meeting at BIU headquarters last month. But according to Mr Furbert the topic of the Union calling in its loan was never mentioned during proceedings.He said: “That’s quite contrary and to even think the BIU would do something like that to a community club is pretty far reaching because I would like to think that before anything like that goes down, the Union would sit down with the club and have dialogue about a, b or c. The BIU is not calling in PHC’s loan.”Mr Furbert added: “This is very disturbing because that’s not what we told the membership the other day, that’s not what we said to them. I am very curious right now as to why somebody would put that out there in the public because that’s not what was said to the membership.”PHC have suffered losses of revenue in recent years primarily due to the recession and loss of tenant Total Home Ltd at its two-storey Reid Street building.Total Home went into liquidation last year with the Registrar of Companies being appointed as the official receiver. All funds garnered from the liquidation of Total Home were used to pay liquidation expenses, a loan due to HSBC and unpaid employee claims.There were no other available funds to pay other creditors, including landlords PHC.According to Mr Furbert, the PHC had to write off as much as $164,250.00 in unpaid rent.“These kind of things are basically what people have to take into consideration regarding the predicament PHC is in right now because of the recession and Total Home lost its business,” he said. “And these things happen in business and you have to sit down and try and work your way through them.”During PHC’s semi annual general meeting at the BIU last month club executives presented a host of options to pay off debt and improve the club’s current financial standing that included selling their Reid Street building and consolidating resources to the club’s property in Warwick.PHC’s building on Reid Street was estimated to be worth between $3.2 and $3.6 million in 2010.Mr Furbert declined to comment when asked about the potential sale of PHC’s two-storey building on Reid Street which currently has one occupant (The Salon Store).Meanwhile, other options being explored to improve PHC’s financial standing include:l Borrowing funds from the bank to pay off BIU debt and renovating the bar at PHC’s Hamilton building.l Bringing their Warwick field online to host sporting events (PHC Field currently only hosts cricket matches).l Borrowing funds from the bank to open a bar and attempt to renegotiate a loan with the BIU.Possible sale of an unused portion of property in Warwick and renting their field.According to the BIU’s accounts, the Union issued a series of promissory notes in 2001 with an interest rate of seven percent. According to a note in the accounts, which were audited by Ernst & Young, the borrower, in this case PHC, reserved the right to make principal payments at any time. The promissory notes were secured by the assets to which they relate, primarily land and buildings, the note said.According to reliable sources PHC used the deeds to their Reid Street building as collateral for the BIU loan.PHC’s old clubhouse in Warwick was demolished in 2003 to make way for a new $4 million multidimensional complex.The project, which has not yet started, entails the construction of a modern clubhouse with a gymnasium, health club, changing rooms, boardroom, recreation room, a library and computer area and a members’ bar.The new facility, said to feature terraced, covered seating for 450 people, would overlook a full-sized cricket ground which would also cater to football with the option of being utilised for other sports.In total, the project will encompass 40,000 square feet.After the BIU made the $1.2 million loan to PHC, the club successfully negotiated a 20-year lease agreement for $1 million with Esso for 20,000 square feet of land at their Warwick ground.Esso subsequently leased an additional 2,000 square feet of land for $125,000.00 to bring the total amount of the lease to $1,125.000.00.Monies for leasing the gas station property have been fully paid to PHC.