MG Rover creditors receive £50.9m from carmaker’s liquidator
Unsecured creditors to collapsed car maker MG Rover are to receive a further £50.9 million from the group’s liquidator PwC.
The professional services firm said on Friday that the payout is a result of more than 10 years of work in pursuing the recovery of funds from an overseas company.
MG Rover collapsed into administration in 2005 with debts of £1.4 billion and left in its wake more than 6,000 job losses. It had been bought by directors known as the Phoenix Four for a token £10 five years earlier.
Among those creditors being paid will be 5,600 former staff and suppliers left out of pocket as a result of the collapse.
However, they will only receive 6.3p in every pound they are owed.
PwC said that the total return to all creditors to date is 16.2p in the pound, three times more than the original estimated recovery.
Including the latest payment, more than £130 million has been distributed to creditors since PwC was appointed in 2005.
Matthew Hammond, PwC Midlands region chairman, said: “After more than a decade of pursuing recoveries for creditors, including many former employees, 2018 has seen significant further realisations and we are delighted to be able to distribute an additional £50.9 million.
“This dividend is a timely and great result at this stage of a liquidation process for former employees and suppliers.
“The MG Rover collapse was a significant event for a number of reasons – first and foremost for the many employees and families it impacted. The size and complexity of the liquidation has been challenging, but we have now returned over 16p in the pound to creditors, which is pleasing compared to the 5p that was estimated at the start.”
PwC said it is continuing to pursue further claims which could lead to further recoveries for unsecured creditors.