Holidaymakers will still be able to visit La Manga Club, despite the Spanish resort declaring that it was insolvent last week.

The holiday complex – a popular destination for sporting breaks – and sister company Inmogolf SL, took the decision after it was unable to refinance debts of around £83 million.

However, a spokesperson for La Manga Club said the resort would remain open until the insolvency agreement expires in 2010, after which the owners will again attempt to restructure its debts.

The agreement allows payments to all creditors to be deferred without financial penalty.

La Manga Club, bought for £102 million by Medgroup in 2004, has suffered financial problems in the past, most notably in 1978 when it went bankrupt and was sold to P&O.

A statement from Medgroup blamed the current difficulties on a significant drop in bookings – part of a general crisis being felt by Spain’s high-level tourist sector.

The 1,220-acre Costa Calida resort features three golf courses, 28 tennis courts, eight football pitches and a five-star Hyatt Regency hotel.

La Manga was in the headlines in 2003 after England footballers Rio Ferdinand and John Terry were allegedly involved in a brawl with members of the hotel’s maintenance staff.

The following year three Leicester City players – Paul Dickov, Frank Sinclair and Keith Gillespie – spent a week in jail after being accused of sexual assault while staying at La Manga. Spanish authorities eventually dropped all charges.



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