The bankruptcy proceedings have mushroomed dramatically in the province during the last two years. Of the 20 insolvencies seen in 2007, Malaga has grown to 125 in 2009. The figure represents an increase of 525% in just two years, according to the scale of the data prepared by the firm PriceWaterhouseCoopers (PwC).

Malaga was in 2009, the second province of Andalusia in number of insolvency proceedings, behind Sevilla, with 195 insolvencies, and well ahead of Cadiz (83), Granada (52), Jaen (52), Cordova (44) or Almeria (29).

The Community of Andalusia in 2009 garnered a total of 603 of the bankruptcy proceedings recorded in 5860 throughout the country. The latter figure has shattered expectations of the Supreme Judicial Council (CGPJ), which hoped to close the year 4738 insolvencies.

The insolvency activity grew 104% last year in Spain where the Mediterranean areas and the centre remain the most active in this regard, as stated by the report of PwC. The consultant's analysis highlights that the sectors of construction and real estate remain the sectors with most insolvencies, representing no less than 34% of all cases initiated in 2009. But the consultant warned that the crisis in 2009 "has begun to attack the a lot of other different sectors: the industrial, automotive and distribution.

Moreover, the number of bankrupt companies are now more and smaller than a year ago. Regarding the nature of insolvencies in 2009, 94% of the insolvencies of legal persons was voluntary, and only 6% were necessary, equivalent to 297. More than 100,000 employees were affected by bankruptcies in 2009. Specifically, the bankrupt companies finished the year employed 109,412 workers. Most companies that found themselves in these procedures, 77.4%, had less than 50 employees.

Among the main companies of the province that were declared in bankruptcy protection during 2009 include the International Society of Properties and Investments Ltd., which operates the landmark hotel in Benalmadena Torrequebrada, several companies linked to the group Aifos, the company that gives support to Hotel Byblos in Mijas and the builder Evemarina.