Klondike MLA Peter Jenkins has been given 30 days to pay back $281,000 of the $308,000 he owes in Yukon government loans or he could lose his Eldorado Hotel in Dawson City.

A Yukon Supreme Court order made Tuesday afternoon by Justice Foisy allowed a six-month redemption period for him to pay the $281,0000.

However, a separate agreement between Jenkins and dana Naye Ventures gave Jenkins 30 days from yesterday to pay back the loan. In addition to the $281,000, Jenkins was ordered to also pay for costs.

dana Naye Ventures is in charge of collecting outstanding government business loans. It took over the loans in 2005.

After Tuesday's court appearance, Wayne McLennan of dana Naye said he's confident the money will be paid back under the terms of the separate agreement worked out between the two parties.

'An agreement was reached prior to (Tuesday's court case),' said McLennan, though he would not provide details on it.

'That's a private agreement between us,' he said.

The court order provides dana Naye with collection measures should Jenkins not come through with the money, explained McLennan.

'I think it would be a very unusual circumstance,' he said of Jenkins not paying back the funds.

If Jenkins doesn't come up with the cash he owes, dana Naye could sell the hotel or appoint a receiver.

dana Naye is also continuing its loan collection of other individuals or businesses with outstanding government loans.

Last November, Jenkins who was then deputy premier, government house leader, Environment minister and Health and Social Services minister left the governing Yukon Party to sit as an independent.

Jenkins said he resigned from the party because of his inability to move major Dawson issues forward.

Premier Dennis Fentie said the MLA would have been removed from cabinet anyway when his government loans became the subject of court action.

Jenkins told the Star this afternoon he's ready to pay back the money under the agreement signed with dana Naye, though he wouldn't specify how long it would take him.

Asked for specifics, he would only say: 'Within the time allotted.'

There have been offers made for the loans to be repaid over the years that haven't worked out, he said. This deal has been in the works for a long time, he added.

'Apparently, the Yukon Party didn't want to make an agreement,' he said.

With news of the loans and MLAs Gary McRobb, who was kicked out of the NDP, and NDP MLA Eric Fairclough thinking of leaving the party, Jenkins said it's a good news day for his former party.