The owner of the Gunpowder Cavern restaurant in St. George's is on the verge of declaring bankruptcy after a huge investment of time and money into the business.

Mrs. Rachel DeFontes, 60, said she is desperately trying to sell the business at a "rock bottom'' price to generate funds to pay creditors and have some leftover for herself.

But according to Mrs. DeFontes, who estimated the business' debts at about $45,000, Works & Engineering have apparently said she cannot sell the business as a restaurant.

This despite a "serious'' offer from a half dozen local residents interested in resurrecting the Sapper Lane business as a restaurant, she said.

"This is a horror story, I have suffered tremendously,'' she said.

Eight years ago, Mrs. DeFontes and two unnamed partners bought the restaurant, then called the Fort William, and leased the building from Works & Engineering.

Takeover cost was over $100,000, or the previous owner's debts from the business, she said.

Soon after the 1987 purchase; the Club Med shut down, the Amerikanis ship stopped visiting St. George's, the two other partners left and the recession hit, she said.

Mrs. DeFontes also suffered a mild stroke last year.

Part of her efforts to keep the business going include using proceeds from the 1992 sale of her home to prop up the restaurant. Prior to that sale, she had taken out a mortgage to help the business.

Repairs since 1980 have occurred at a "non-stop'' rate, she said in an eight page letter to Works & Engineering earlier this year asking them to allow her to sell the restaurant business.

Selling the equipment would not generate enough to pay creditors, she said.

She estimated sinking over one quarter million dollars into the restaurant.

Rent, as well as Belco, Telco and the bank are among the creditors.

She believes Works & Engineering no longer want the building to be a restaurant.

"They want to evict me because I am behind on the rent and Works & Engineering told me they don't want it to be a restaurant anymore. It might be turned over to parks, maybe become a museum or horse stables for the seasonal carriage trade in St. George's,'' she said.

Mrs. DeFontes said there has been a restaurant on the three-quarter acre site for about 40 years.

She believes, if allowed to sell the business as a restaurant, she will contribute to the economy rather than the alternative, approaching the Department of Health and Social Services and becoming a burden to the taxpayer.

Works & Engineering Minister the Hon. Mr. Leonard Gibbons, said: "I appreciate the situation and we are trying to be as compassionate as possible (but) she owes rent and we have asked her to vacate the premises.'' The Minister added: "The position, as I understand it, is that Mrs. DeFontes, over the years, has come up with several people who are interested but that has come to naught to date.'' As with other properties, the Ministry may tender for a future use of the property, he said.