PwC secures additional £50m for MG Rover creditors
Liquidators at PwC have announced a Christmas present for unsecured creditors of MG Rover Group Ltd, including former employees, who are in line for a share of a further £50.9m distribution, more than a decade after car production group collapsed into administration
21 Dec 2018
The dividend of 6.3p in the pound is being returned to around 5,600 unsecured creditors, including former employees and suppliers. The firm says the distribution is a direct result of over 10 years of work by PwC pursuing the recovery of funds from an overseas group company.
PwC has been working with the German liquidator to recover monies owed, leading to a recent pay out from Germany.
The latest distribution brings the total return to everyone with admitted claims to 16.2p to date - three times more than the original estimated recovery. Including the latest payment, more than £130m has been distributed to creditors since PwC was appointed in 2005.
Midlands-based MG Rover went into administration in 2005, leading to 6,000 employees losing their jobs. Partners from PwC were appointed as administrators, with the process converting into a liquidation on 28 March 2006.
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 £50.9m.
‘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 is continuing to pursue further claims which could lead to further recoveries for unsecured creditors.
Report by Pat Sweet