MG Rover creditors receive £5.2m from car maker’s liquidator
The firm collapsed into administration in 2005.
Unsecured creditors to collapsed car maker MG Rover are to receive a further £5.2 million from the group’s liquidator PwC.
The professional services firm said on Thursday that the payout will go to creditors to Powertrain, the part of MG Rover that manufactured engines and gearboxes.
MG Rover collapsed into administration in 2005 with debts of £1.4 billion and more than 6,000 job losses. It had been bought by directors known as the Phoenix Four for a token £10 five years earlier.
The Powertrain dividend of 4.74p in the pound is being returned to around 1,700 unsecured creditors, including 1,200 former employees.
PwC said this brings the total return to Powertrain’s unsecured creditors to 39.74p over four payments totalling £43.7 million.
Matthew Hammond, PwC Midlands region chairman, said: “We are delighted to be able to make this further payment to Powertrain creditors, including many former employees.
“We have now returned almost 40p in the pound to Powertrain creditors, which is a great result at this stage of a liquidation process for former employees and suppliers, and is pleasing compared to initial estimates.
“The collapse of the MG Rover Group impacted many families and communities. Our teams working on this case have brought to life one of our key purposes of solving important problems – in this case the size and complexity of the MG Rover Group and enabling a significant return to creditors.”
PwC said it is continuing to pursue claims which could lead to further recoveries for unsecured creditors.
In December, unsecured creditors received £50.9 million from PwC.
Including the latest payment, more than £130 million has been distributed to creditors since PwC was appointed in 2005.