Former Abba star Anni-Frid Reuss has lost a lawsuit aimed at pushing a Quigong resort specialising in Chinese medicine and meditation into bankruptcy to recoup a multi-million dollar loan, a lawyer said Friday.

"My client (Marcus Bongart) is very relieved," his lawyer Arne Kaellen told AFP after the court rejected Reuss's petition.

The Malmoe district court on Thursday ruled against Reuss and her companion Henry Smith. They had asked that the Yangtorp Qigong resort be liquidated to allow them to recover a loan of 46 million kronor (4.9 million euros, 7 million dollars).

The Yangtorp resort, which comprises a hotel and temple, meanwhile insisted the money was a donation from Reuss, better known as Frida to Abba fans.

The court ordered Reuss and Smith to pay the legal costs in the case, amounting to 65,575 kronor.

Their lawyer Carl-Gustaf Soeder told the Expressen daily he was surprised by the verdict, but added that the ruling was "just the first step in a long process."