THE Iveagh Fitness Club in Dublin is to open in the autumn. It was bought by the Sean Quinn Group after the company spearheading it went into receivership, with debts approaching £1 million.

Almost 1,000 people who paid deposits to join the centre will have them honoured in full by the new owners. It is believed around £120,000 in deposits had been paid over to Colmant Ltd, the company which had begun the project.

The centre, which is located near Dublin Castle in the city centre, will feature a swimming pool, aerobics studio and a gymnasium.

Membership fees varied from around £495 per year for single membership to £700 per year for couples. Most people had paid around £100 and one source said about £120,000 bad been paid in membership fee deposits in total.

The Sean Quinn Group advertised for tenders to complete the remaining work. Around six or seven firms tendered for the contract which will be awarded within the next couple of weeks.

It is understood the centre will open in September or October. Around 65 per cent of the work had been completed before the centre went into receivership in February. It was sold to the Sean Quinn Group for £700,000 two days after receiver Mr Barry Forrest, of O'Connor Leddy & Holmes, was appointed.

It is believed he argued the fitness centre had to be sold quickly otherwise he would be left with a dwindling asset. He received three bids, according to sources, and the under bidder had offered £650,000.

A company called International Leisure Group (ILG) a supplier to the leisure industry and a creditor of Colmant later petitioned the High Court to appoint an examiner. The application was granted.

However, the Sean Quinn Group claimed it had a binding agreement for the purchase of the fitness centre's assets with Mr Forrest.

The High Court later upheld the contract which had been made with the Sean Quinn group and said the examiner should never have been appointed. The judge said if he had been satisfied when he heard the petition (for an examiner) that there was an enforceable agreement, he would not have made the examinership order.

It is understood that Colmant's major secured creditor is Anglo Irish Bank which is owed £630,000. Unsecured creditors, who are owed around £400,000, will not get paid.

The Sean Quinn Group is headed by Mr Sean Quinn who is a cement manufacturer. He also owns several public houses and has hotel and insurance business interests.

Mr Quinn also owns the Slieve Russell Hotel, Golf and Country Club in Ballyconnell, Co Cavan.

In a letter to those who paid subscriptions, the company said it intends to introduce a new and expanded range of memberships for the Iveagh Fitness Club which will give a greater" choice to new and existing members alike.

"This, however, will not involve you in having to pay over and above the first year's membership amounts agreed previously with you, the letter said.

In the meantime, the company is not accepting new members.