An agreement to settle the tax debts of the Hamiltonian Hotel and Island Club Ltd. is expected to be finalised this week.

The Ministry of Finance has applied to appoint the Official Receiver as provisional liquidator of the Pembroke resort, arguing that it owes more than $1.4 million in unpaid taxes.

But in Supreme Court on Friday, Chief Justice Richard Ground adjourned the case until Friday this week, after Robin Mayor, representing the Ministry, said a solution was close.

"The monies are there," Ms Mayor told the court. "I'm very confident that by next Friday I will be appearing to ask you to dismiss the petition."

A deal had almost been struck last week, Ms Mayor added, but questions had been raised over a 1995 judgement pertaining to the resort, which it took several days of research to determine had been satisfied.

Attempts to save the business have dragged on for around five years, hampered by a dispute over the resort's rightful ownership.

US national Stephan McGee has claimed ownership, as has the management of the resort, led by Douglas Burgess.

Mr. McGee was granted power of attorney over the estate of former owner Harold Stavisky, who died in December 2004. In his will, Mr. Stavisky bequeathed the Hamiltonian to his son Matthew Lawrence Stavisky, who had given Mr. McGee power of attorney.

Mr. McGee believes the taxes owed to the Government total less than the $1.4 million that has been claimed.

Marc Daniels, a local attorney who has worked on the case for Mr. McGee, told The Royal Gazette last year: "I believe there is a lot of payroll tax and pensions related to people who are listed as employees, but who are no longer employees and have not been for more than a decade in some cases," Mr. Daniels said.

"Yet the liabilities have been ongoing."

The Hamiltonian's financial problems go back years. A report by Auditor General Larry Dennis in 2003/04 revealed that the Hamiltonian was $918,667 in arrears on pension contributions and former Bermuda Industrial Union president Derrick Burgess claimed the property had not made any social insurance contributions in 20 years.

In 2006, Mr. Dennis described the Hamiltonian as "an atrocious corporate citizen", when it topped his 'name and shame' list of delinquent taxpayers.

The Debt Enforcement Unit, of the Attorney General's Chambers, sued the Hamiltonian in 2006 over the failure to pay more than $1 million in seven different Government taxes.

The resort, which is located on top of Langton Hill in Pembroke, rents out apartments with swimming pool and tennis court facilities.