Documents have been filed in the Yukon Supreme Court demanding Warren Lafave, owner of Inconnu Lodge, repay a $188,000-plus debt.

Lafave is the highest debtor on a list of delinquent loans from the Yukon government's Business Development Fund, which existed in the 1980s and 1990s.

Lafave received two loans through the fund, one with an initial amount of $142,500 and the other with $100,000.

The current lawsuit is for the $100,000-loan.

According to the court documents, as of Dec. 19, 2005, Lafave owed $188,459.09 on the loan. He also continues to incur debt at six per cent per year or $16.44 a day.

The loan was issued in June 1987, state the documents, and Lafave agreed to the loan amount and the interest.

In August 1995, a demand letter was issued to Lafave, but '...the defendant has failed to and/or refused to provide payment as required...', said the documents.

Another demand letter was issued in late December 2005, Wayne McLennan of Dana naye Ventures, which has been tasked with collecting the loans, told the Star this morning.

McLennan added foreclosure action will be taken on the other loan in the next several days.

That loan is connected to the property Lafave has a lease on for the wilderness adventure lodge located on the north shore of McEvoy Lake near the N.W.T. border.

The $142,500 was worth $408,446.59 as of Dec. 31, 2005.

The two loans have accumulated more than $354,619.38 in interest, taking Lafave's debt to $597,119.38 as of Dec. 31, 2005.

The current law suit is seeking the loan amount, all interest and the cost of taking the case to court, state the documents.

Lafave, who now resides in Kelowna, B.C., has 21 days to respond to the filings in court. He was unavailable for comment this morning.

McLennan declined to comment on if Dana naye is currently in negotiations with Lafave.

'Filing the documents in court doesn't prevent negotiation,' he said. 'But instead of just biding time, we are starting to take action.'

Lafave has not made any payments against either loan since they were put in Dana naye's custody in March 2005, said McLennan. Previously, he has put $52,086.42 against the loans' interest.

The Whitehorse company was awarded custody of 42 loans, formerly held for years by the Yukon government, and now has the responsibility of collecting on them.

Peter Jenkins, the independent MLA for Klondike, is also in court for his delinquent loans.

The former health minister, environment minister and deputy premier resigned from the Yukon Party in late November 2005.

Jenkins claimed the move was to better represent the interests of his constituents.

Premier Dennis Fentie, however, said Jenkins had issued an 'or else' ultimatum to the government regarding the loans.

Only days later, on Dec. 5, Jenkins landed in court for his $308,000-plus debt.

The court documents indicate if Jenkins does not repay the $308,165.24 debt, he may lose his Eldorado Hotel in Dawson City. The loan has continued to build $114.57 a day in interest since Nov. 19, 2005.

The government gave Dana naye a $350,000-advance to start the loans collection, with $50,000 going toward collecting the debts and the rest being used to provide loans to small businesses.

The first $350,000 collected by Dana naye was to be returned to the government.

The rest of the $2.1 million in repayable moneys will be divided between the company and the government.

Eighty-five per cent of the money will be used by Dana naye to hand out more loans to small businesses and 15 per cent will be returned to the government.