New £51m pay­out for MG Rover’s cred­i­tors Bonus for for­mer staff and sup­pli­ers 13 years on

Birmingham Post - - NEWS - Tam­lyn Jones Busi­ness Cor­re­spon­dent

UN­SE­CURED cred­i­tors of failed Birm­ing­ham mo­tor man­u­fac­turer MG Rover Group will re­ceive £50.9 mil­lion in new pay­outs.

Liq­uida­tors at fi­nan­cial ser­vices firm PwC have an­nounced the deal which will in­clude dis­tri­bu­tions to for­mer em­ploy­ees and sup­pli­ers.

PwC said this pay­out was the re­sult of more than ten years of work pur­su­ing the re­cov­ery of funds from an over­seas group com­pany.

MG Rover was head­quar­tered in Long­bridge but col­lapsed in 2005, cost­ing 6,000 jobs.

PwC has been work­ing with a Ger­man liq­uida­tor to re­cover money owed, lead­ing to a re­cent pay out from Ger­many.

A div­i­dend worth 6.3p in the pound is be­ing re­turned to around 5,600 un­se­cured cred­i­tors.

This brings the to­tal re­turn to ev­ery­one with ad­mit­ted claims to more than £130 mil­lion, which PwC said was three times more than the orig­i­nal es­ti­mated re­cov­ery since its ap­point­ment in 2005.

Mid­lands chair­man Matthew Ham­mond said: “Af­ter more than a decade of pur­su­ing re­cov­er­ies for cred­i­tors, in­clud­ing many for­mer em­ploy­ees, 2018 has seen sig­nif­i­cant fur­ther re­al­i­sa­tions and we are de­light- ed to be able to dis­trib­ute an ad­di­tional £50.9 mil­lion.

“This div­i­dend is a timely and great re­sult at this stage of a liq­ui­da­tion process for for­mer em­ploy­ees and sup­pli­ers.

“The MG Rover col­lapse was a sig­nif­i­cant event for a num­ber of rea­sons – first and fore­most for the many em­ploy­ees and fam­i­lies it im­pacted.

“The size and com­plex­ity of the liq­ui­da­tion has been chal­leng­ing but we have now re­turned over 16p in the pound to cred­i­tors which is pleas­ing com­pared to the 5p that was es­ti­mated at the start.”

This div­i­dend is a timely and great re­sult at this stage of a liq­ui­da­tion process

> MG Rover col­lapsed in 2005

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