I had an e-mail from Med Group a few weeks back. I was questioning the implications of La Manga going into administration.
Here is an extract of their reply.....
".... please acknowledge that the situation in La Manga Club does not alter the residential project of Playa Macenas since Playa Macenas belongs to a different company structure (Med Macenas) than the one of La Manga Club. The company Med Macenas does not face such issues, nor does Med Group Inversiones S. L. which is the holding company.
As a voluntarily course of action, Med Group has decided to put La Manga Club into administration in order to seek protection from its creditors. This is a technical measure to stabilise and guarantee the continuity of the residential project.
In Playa Macenas, Med Group has been working according to the original schedule so far: the golf course, the beach club infrastructures and the foundations of the hotel have been completed. Although most of the properties in phase one, are currently being delivered to owners, I am aware that other properties may encounter some delivery delays or finishing issues. In these cases, Med Group is tackling any single problems: it is negotiating with the constructors to provide the appropriate solutions and it is talking to the owners to inform about the outcomes.
On behalf of Med Group, I would like to reassure you that the company has a strong commitment and interest to continue maintaining and developing further the resort of Playa Macenas. The company believes the current economic condition is only temporary unfavourable. Med Group shall however align the construction of new properties and the development of planned infrastructures in Playa Macenas to meet the changing market demand. It is Med Group responsibility to make sure that Playa Macenas remains viable for the existing and future owners under the current global economic slowdown."
Seems an honest reply but only time will tell whether it is an accurate one. I would like to believe that they are adopting a sensible strategy in a challenging market. No point in building new houses which are unlikely to sell. Best to concentrate current resources on completing the initial phases. When the market shows signs of recovery the prudent developers can then get building again.
Friend of mine was over there a few weeks back and was pleased with what she saw. Lots of workers around (planting etc) but not many on the construction side.
Dean