The Senate in American Samoa has killed the governor's bail out plan for the Rainmaker Hotel.
Senators have voted unanimously to reject the bill in a second reading.
The Governor, Togiola Tulafono, had proposed that the government loan just over a million US dollars to the owners of the hotel, the American Samoa Development Corporation.
Under the legislation, the Development Corporation would then pay outstanding debts to the government by issuing shares in the hotel.
Senator Te'o Fuavai opposed the bill saying that government funds should not be used to pay debts caused by bad management.
Senator Lualemaga Faoa said if government witnesses, such as the Development Bank, chose not to turn up when requested to explain the plan, then the bill should be thrown out right away.
