Birmingham Post, 11th September, 2009
The Rover report runs to more than 830 pages and details restructuring changes within MG Rover Group under the “Phoenix Four” which led to the creation of 33 companies.
An inquiry was set up by the Government after MG Rover went into administration on April 8 2005 owing creditors nearly £1.3 billion.
Gervase MacGregor and Guy Newey QC were appointed as Inspectors under Section 432 of the Companies Act 1985 and instructed to investigate the affairs of MG Rover Group, its parent company Phoenix Venture Holdings (PVH) and MGR Capital Limited between the purchase of MG Rover from BMW in May 2000 and the date of it entering administration.
The Inspectors investigated the actions of the Directors of PVH throughout their five-year ownership – particularly Peter Beale, John Edwards, Nick Stephenson and John Towers, known as the Phoenix Consortium.
As well as looking at the creation of the 33 separate companies throughout that period, the Inspectors looked at the scale of financial rewards made to the Directors and the events which led to administration itself.
This included the role of Government to secure bridging finance while take-over discussions took place with Chinese car manufacturers Shanghai Automotive (SAIC Group).
The inquiry studied the role played by professional advisers including auditors and corporate finance advisers Deloitte and lawyers Eversheds; aspects of corporate governance; and financial statements and audit arrangements including the transfer of assets.
[Source: Birmingham Post]
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