Press Report : Tiny payout for LDV creditors

Graeme Brown, Birmingham Post, 24th June, 2010

Creditors of failed Birmingham van-maker LDV will share a maximum of just £600,000 in compensation payouts – from a total debt mountain of £75 million.

Hundreds of dealers, trade suppliers and other firms owed sums of up to six figures by the Birmingham van manufacturer have been told they will get dividends of less than 1p in the pound.

The shareout of just £600,000 is revealed in the final progress report on the administration from PricewaterhouseCoopers.

LDV collapsed into administration in June last year, throwing more than 800 people out of work directly and thousands more in the supply chain.
Hundreds of unsecured creditors lodged claims following the collapse of LDV, including Dana Spicer Axle Europe of Witton, owed £684,111, law firm DLA Piper of Birmingham, owed £184,000 and Sonas Automotive of Tyseley, owed £204,989.

[Source: Birmingham Post]

Posted in: AROnline News, LDV
Clive Goldthorp

About the Author:

Clive claims that his interest in the BMC>MG story dates back to his childhood in the 1960s when the family’s garage premises were leased to a tenant with an Austin agency. However, back in the 1920s and 1930s, his grandmother was one of the country’s first female Garage Proprietors so cars probably run in his genes! Admits to affairs with Alfa Romeos, but has more recently owned an 06/06 MG TF 135 and then a 15/64 MG3 Style… Clive, who was AROnline’s News Editor for nearly four years, stood down from that role in order to devote more time to various Motor Racing projects but still contributes articles on as regular basis as his other commitments permit.

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