Landmark resort ensures business as usual as legal deal provides security and strong bookings continue for 2009 

ON Wednesday 19th November 2008, Europe’s No.1 sports and leisure resort, La Manga Club S.L. and associated real estate company, Inmogolf S.L., entered into a 'Concurso Voluntario de Acreedores' (CVA) to secure the future of both companies.
 
A CVA is a corporate status specific to the Spanish legal system that ensures that good Spanish businesses are able to continue trading to the same standards whilst their financial difficulties are resolved. Under the terms of the CVA, all La Manga Club creditors, as at 19th November 2008, are deferred and no financial charges are payable until at least 2010. At the end of this initial period, on request, the CVA can be further extended.
 
Director of operations, Julio Delgado, stated, “La Manga Club is well positioned to take full advantage of the breathing space offered by the court order and, in collaboration with our hotel management partner, Hyatt, we are developing a strong business plan for 2009. The organisation has undergone considerable improvements and investment over recent years and we are now in a secure position to capitalise on our unique offering.
 
Indeed, we have seen strong bookings for 2009, with high profile events such as The Ladies European Golf Tour Q School, and The Audi Golf Classic as well as a number of first division European football clubs’ seasonal training sessions.
 
¨It is business as usual, starting with a marketing relaunch this winter to increase our share of core markets in golf, other sports, incentive groups and families during school holidays,” concluded Delgado.
 
This temporary situation which has arisen in the La Manga Club operation is due to the combination of the global liquidity crisis, exacerbated by LMC’s large financial indebtedness, which represent a large part of its total debt.