Charlottetown hotel contractors owed millions

A group of P.E.I. companies who built the new Holman Grand Hotel have filed liens against the building, with the company that built it having filed for creditor protection.

The hotel opened this summer, and owner Homburg Invest filed for creditor protection in September. So far seven Island companies that helped build it have filed liens not only against Homburg Invest but also against Dyne Holdings, a related company.

So far more than $3 million worth of lien claims have been filed with the registrar of deeds under the Mechanic's Lien Act. The liens were all filed in the lastfive to sixbusiness days.

"It's bad. Bad for everybody," one of the lien claimants, who did not want to be named, told CBC News Wednesday.

"I'm hoping the government will step in and do something."

Dyne Holdings has said it would likely take responsibility for the hotel and related debts if Homburg Invest doesn't emerge from creditor protection. The province promised Dyne Holdings a $16.3 million loan to build the hotel in 2008.

If the liens aren't settled, court action could be next.

In an email to CBC News Ron Ryder, a communications officer for the province, said"[Island Investment Development Inc.] is meeting its committment to the project," said Ryder.

"We are hopeful that Dyne / Homburg will do the same."

Dyne Holdings has not returned CBC's calls.