Press Report : MG Rover’s overseas network realises £8m for creditors
Jon Griffin, Birmingham Post, 24th July, 2009
The last remaining assets of the UK’s once most famous factory are being slowly realised – with up to £8 million still to be raised from the ashes of the Longbridge empire. Millions of pounds of assets are still tied up in MG Rover’s network of overseas import companies, more than four years on from the closure of the factory.
The money, which will add up to £8 million to the £42.6 million already raised for creditors by Administrators PricewaterhouseCoopers, relates to MG Rover overseas subsidiaries in continental Europe, including France, Germany, Italy and Spain. The value of the overseas network is revealed in the latest Joint Liquidators Report into the £1.4 billion collapse of Longbridge compiled by the Administrators.
Administrator Rob Hunt said in the report: “The principal assets for the Liquidators to realise have been the company’s loan and investment interests in subsidiary companies. These subsidiary companies are subject to insolvency proceedings and the timing of distributions from them depends upon when their respective office holders have realised sufficient assets and agreed their claims.
“As the assets being realised by the subsidiary companies continue to include interests in overseas companies which are also subject to insolvency proceedings, it is difficult to predict when that work will be completed. I estimate that between a further £5 million and £8 million should be realised by the company in respect of its interests in subsidiary companies.”
The estimated sums relate to about ten import companies across Europe owing money to MG Rover at the time of the firm’s closure in April 2005. However, many trade creditors are missing out on a £40 million fund, with an unspecified number of potential claims from the UK and overseas worth an estimated £464 million still to be considered by PwC.
[Source: Birmingham Post]