Notorious boxing brothers' luxury hotel folds with £2.5m debts

Notorious boxing brothers' luxury hotel folds with £2.5m debts



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Two millionaire boxing promoters at the centre of a massive money laundering investigation have had their luxury country club taken into administration with debts of £2.5 million.

According to Scottish paper, The Daily Record, the Dalziel Park and Conference Centre in Motherwell, Lanarkshire, owned by Mario Rea, has been forced into the hands of administrators, KPMG, after Mario failed to pay creditors.
The boxing promoter and his brother Carlo are the grandchildren of boxing champion Bert Gilroy and bought the club in 2007 for over £2 million.
However, it has since been the scene of controversy after the brothers hit headlines in 2008 when they were arrested on suspicion of money laundering and drugs offences. The investigation is ongoing.
The hotel was also the contentious scene of the Labour Red Rose dinner fiasco when Labour politicians, Jack McConnell and John Reid, attended a fundraising dinner also attended by the known drug dealer Justin McAlroy.
And now Mario looks set to lose the luxury country club as his firm, Dalziel Assets Limited, which owns the club has been put up for sale by the administrators.
But according to the Daily Record, joint administrators Blair Nimmo and Neil Armour, have admitted they are unlikely to recoup all of the owed money after documents filed by the boxing promoter failed to provide full details of the business’s financial position.
Santander, who provided security for the purchase, claims it is owed £2.5million by Dalziel Assets Limited.
KPMG now faces the task of finding a buyer for the hotel and plans to start marketing the venture soon. In an official statement released by the firm they said: “Due to a number of ongoing legal issues surrounding the Company and the operation of the facility, the business and assets have not as yet been marketed for sale.
“Marketing is anticipated to start in the near future.”
Blair Nimmo, joint administrator and head of restructuring for KPMG in Scotland said: “Dalziel Hotel and Conference Centre has historically been a popular venue for weddings, leisure and conferencing.
“The potential buyer will acquire an established business which has a loyal clientele and strong catchment area for customers. We believe we will find a buyer for the facility once the marketing exercise is fully underway".
However, in the current economic client, and bearing in mind the hotel’s colourful history, it seems unlikely the country club will see a quick sale.

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