Los Monteros Hotel in bankruptcy proceedings

Los Monteros Hotel in bankruptcy proceedings
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By h.b. - Nov 20, 2009 - 10:15 AM

Los Monteros - Brochure photo

It means a judicial administrator will take control of the five star establishment

The Marbella Hotel, Los Monteros, has announced bankruptcy protection, known as the suspension of payments after being closed for the past six months. El País reports that the owner, the Russian magnate Ernest Malyshev, has failed to comply with the plan to refloat the establishment made last September. Under the plan workers accepted the temporary redundancy of 60 workers, while 72 remained to re-open the hotel. Payment of back wages was promised along with a series of new investments, but none of that has actually happened.

Malyshev closed the hotel in May, but has not paid any wages since the start of the year, and was denounced by the workers in August.

Union CCOO said the suspension of payments affects the three companies owned by the Russian, Las Dunas Land, Inversiones Dajoal and Inversiones Aljoda.

Union secretary for the hostelry industry in Málaga, Lola Villalba, warned that if the suspension of payments goes ahead the hotel will have to be re-opened and the establishment will go under judicial administration until a new formula for a viability plan can be found.

The suspension of payments at Los Monteros follows other 5 star hotels in problems on the Costa del Sol, most of them owned by real estate groups, such as the two Guadalpín establishments in Marbella, Incosol, Byblos and Torrequebrada.

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