The company Quality Hotels & Resorts that administrates the hotels Xibana Park and La Paz in Tenerife filed for insolvency at the end of 2008. The insolvency administrators designated by the Commercial Court of Santa Cruz of Tenerife revealed that the company has an estimated debt of 9 million euros.

If no solution is found to maintain the activity of the company 104 jobs are threatened, of which 43 correspond to Xibana Park and 51 to Hotel La Paz, as stated in the report of the insolvency administration. The insolvency administration of Quality Hotels & Resorts revealed a recognised debt of 9 million euros to the Social Security, Travelplan and the National and the local Tax Administrations, as well as to an amount of small companies.

Moreover, this debt has increased significantly over the last months. Ignacio Rodriguez, workers representative, indicates that the very bad economical and financial administration of the hotels since the company has been declared insolvent has caused the increased debt.

He also states that the reports of the insolvency administrators indicate important deficiencies in the economical administration of the hotels. Moreover, Ignacio Rodriguez indicates that because of the absence of annual accounts of 2008, the reports are based upon the annual accounts of 2005, 2006 and 2007. Therefore it is very difficult to estimate the financial situation of the hotel at the end of 2008.