A company that lost millions in the failed Par-la-Ville hotel project has urged businesses to avoid the island in a message to the United States Consulate for Bermuda.

A spokesman for Mexico Infrastructure Finance Ltd wrote to Constance Dierman, the US Consul General, urging her to warn other companies from “doing business with and in the jurisdiction”.

The company said: “MIF has incurred a multimillion-dollar loss of principal, plus substantial litigation expenses, including those of the City of Hamilton, having done nothing other than provide, in good faith, financing to support a hospitality project fully endorsed by the CoH and Government of Bermuda.

“Although the CoH and PLV were undeniably responsible for releasing the MIF loan proceeds to their immediate theft, the CoH has unjustly succeeded in shifting the monetary loss consequences of those actions to MIF.

“While MIF will continue to seek justice, in addition to a lawsuit already in course in New York, we believe it is important that other potential investors in, and lenders to, Bermuda be aware of the above facts and actions by the CoH.”

The message came after London’s Privy Council ruled against the company in a dispute over a loan guarantee issued by the City of Hamilton.

The municipality has signed an agreement in 2014 to guarantee an $18 million bridging loan from the company to Par-la-Ville Hotel and Residences Ltd.

When PLV defaulted on the loan, the city initially accepted a consent judgment and began to arrange financing.

But the municipality later appealed the judgment on the basis that it was not empowered to issue the guarantee as it was not for a “municipal purpose”.

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