PwC targets an extra £56m return to MG Rover creditors as 10-year milestone is passed

Published at 09:00 AM on 08 April 2015

Today marks ten years since Rob Hunt, Tony Lomas, and Ian Powell were appointed as administrators of MG Rover Group, the Midlands -based car production giant. Whilst some car production still continues today at the Longbridge site, the failure of MG Rover caused significant turmoil for workers, management and the government - with the fallout continuing into this decade. 

PwC's role has continued throughout the period, with the administration converting into a liquidation on 28 March 2006.

The liquidators have realised £165m to date, and processed and agreed more than 5,600 claims from unsecured creditors - including former employees and the Pension Protection Fund- worth £803m.

£80m has been returned to creditors- almost 10p in the pound. Some 4,000 claims from former employees in respect of their preferential claims have also been agreed and paid in full. 

PwC remains in office and continues to pursue a number of claims which could lead to further recoveries for unsecured creditors. One relates to overpaid VAT of £56m dating back a number of years on vehicles manufactured by MG Rover and supplied to fleet operators. The matter is subject to litigation as there are competing claims as to who is entitled to the repayment.

 

 Rob Hunt, partner at PwC, said:

 

“The MG Rover collapse was a significant event for a number of reasons – first and foremost for the many employees and families it impacted. MG Rover was part of the engine house of the Midlands economy and it was a major shock to witness its demise. The size and complexity of the job now sees us pass the 10-year milestone, but we have made significant headway in that time. We’ve returned almost 10p in the pound to creditors- double the 5p that was estimated at the start.”

 

The liquidators, alongside the creditors’ committee, believe it is in the creditors’ interest to pursue the further claims which could materially improve the overall distribution to creditors.

 

Rob Hunt, partner at PwC, added:

 

“We will continue to consult with the creditors’ committee, to provide updates and agree our ongoing strategy. The members of the committee are from the key creditor groups, namely trade suppliers, credit insurers, the dealer network, the Pension Protection Fund and former employee’s. That group has remained constant since the start of the case.

 

“Any further dividend to creditors depends upon recoveries from the remaining claims and we will continue to work hard for the many people affected by MG Rover’s collapse.”

 

ENDS

 

About PwC

PwC helps organisations and individuals create the value they’re looking for. We’re a network of firms in 157 countries with more than 195,000 people who are committed to delivering quality in assurance, tax and advisory services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

 

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.

 

©2015 PricewaterhouseCoopers. All rights reserved.

 


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About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. © 2016 PwC. All rights reserved

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