Financial crisis hits La Manga Club, Spain

November 25, 2008

La Manga Club and Hyatt Regency La Manga has been hit by the financial crisis.

The managing companies Inmogolf SL and La Manga Club SL applied to the mercantile court in Murcia last Friday for voluntary suspension of payments.

The companies revealed this week that they are facing cash problems.

Both have a 97-million-euro debt with several creditors, although their assets reach 170 million euros.

According to a press release issued this week the situation has been caused by the global cash crisis and difficulty in obtaining credits from the banks.

The statement reads: "Spain is suffering a general crisis which has affected the tourist branch especially.

"The number of overnight stays and the average expenses has been reduced.

"The company has not been able to fulfil the business plan for 2008 due to the sales' fall."

Trade unions are afraid employees might be made redundant because of the voluntary suspension of payments.

Currently nearly 700 people are working in La Manga Club and in the Hyatt Regency hotel which has become famous for hosting top British football teams and the English national side.

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