Bankrupt Marbella hotel fails to reach agreed terms

Los Monteros, a luxury hotel in Marbella which has been closed for the last six months due to financial difficulties has announced that it has entered bankruptcy protection. The situation has been inevitable after the Russian owner Ernest Malyshev failed to comply with a plan to refloat the hotel which was agreed in September.

Under the proposed plan approximately 60 works agreed to take a temporary redundancy on the condition that they would receive back payment of wages, whilst just over 70 staff remained working to re-open the hotel.

However the conditions over back payments and other outstanding bills have not been met resulting in the bankruptcy protection being filed.

Lola Villalba the union secretary for the hostelry industry based in Malaga warned that if the suspension of payments does go ahead as planned 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.

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