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]