The La Manga Club, a resort in southern Spain favoured by football clubs including Manchester United, as well as tennis stars such as Anna Kournikova, has declared itself insolvent after its banks declined to refinance part of a €97m (£82m) debt.

The resort on the Costa Calida, which includes a five-star hotel and three golf courses, hit the headlines in 2003 when Rio Ferdinand was alleged to have brawled with staff while there with the England team.

Med Group, a developer controlled by billionaire hedge fund manager George Soros and Perry Capital, another hedge fund, bought La Manga Club for £102m in 2004 from P&O.

But the world famous residential resort is just the highest profile Spanish scheme to fall foul of the economic crisis.

A spokesperson for La Manga Club says: “This decision will not affect La Manga Club, which will continue to run as normal,” a spokesperson told Spanish Property Buff.

“The management team is already working to bring the company out of a state of lack of liquidity and operating deficit in order to stabilise and guarantee its continuity.”

La Manga Club, which includes 3 golf courses, 28 tennis courts, 8 football pitches, a spa, and a 5-star Hyatt Regency hotel, has run into difficulties in the past, most notably in 1978, when it was sold to P&O after going bust.

“The general crisis being suffered by Spain has particularly affected the high-level tourist sector, with significant reductions in bookings and the number of night stays in high-quality resorts such as La Manga Club; this fall in sales has meant that the company has not been able to comply with the business plan expected for 2008,” explains a press release from Medgroup.

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