The accountancy firm Deloitte has had a £14m fine relating to its dealings with collapsed car maker MG Rover cut to £3m after an appeal. The reduced penalty was announced on Monday after an appeals tribunal earlier this year threw out eight of 13 charges against the firm in a case brought by the Financial Reporting Council (FRC). It also cut the fine imposed on former Deloitte partner Maghsoud Einollahi from £250,000 to £175,000 and reversed his three-year ban from the profession. Instead, he and Deloitte were given a “severe reprimand”. MG Rover entered administration in 2005 with debts of £1.4bn and more than 6,000 job losses. It had been bought by directors known as the Phoenix Four for a token £10 five years earlier. The FRC filed a formal complaint against the firm and Einollahi in 2012 and the […]
This Is Money states that iconic British car maker MG Motor UK will this week announce astonishing results, confirming its recovery from near collapse and providing yet another sign of Britain’s resurgent motor industry. The group, now Chinese owned, will proudly reveal that sales surged to a record high in the first quarter of 2015. At the same time the company is set to launch its new MG6 model and it is preparing to open a £30 million flagship showroom in Piccadilly in the heart of the capital. The news is a far cry from events ten years ago when manufacturer MG Rover was forced to call in the receivers after it catastrophically ran out of money as hopes of a £100 million bridging loan from the Government evaporated. MG Rover’s 26,000 workers found themselves instantly unemployed and the ramifications […]
A former consultant for MG Rover has bought LDV vans. Qu Li, who became known for her personal relationship with one of the directors of MG Rover while working as a consultant for the company, confirmed yesterday that she had acquired the assets of the company, through her engineering firm Eco Concept Limited.
Many trade creditors hit in the pocket by the collapse of Longbridge are missing out on a £40 million-plus nest egg – more than four years on from the demise of MG Rover. An unspecified number of potential claims from the UK and overseas – worth nearly half a billion pounds – have not materialized since the Birmingham car firm closed in April 2005, it was revealed yesterday. Administrators Pricewaterhouse-Coopers disclosed in the latest Joint Liquidators Report that up to £464 million of further claims could still be admitted despite the increasing time gap. With two dividends amounting to a total of 6p in the pound already paid to approved claimants some creditors are forgoing sums of many thousands of pounds.
Whilst the Phoenix Four – via their media spokesperson – engage in an a somewhat unseemly public spat over who was responsible for the collapse of MG Rover four years ago with the loss of 6,300 jobs at Longbridge and several thousand more in the wider economy, we need to remember who really lost out here. I doubt if it was the Phoenix Four, who did rather well out of the whole affair – after all their remuneration, pensions and other benefits ran into the millions. Rather, it is the workers and their families, who deserve some answers as to what went so wrong at MG Rover under Phoenix’s stewardship. Lord Mandelson’s statement earlier this week that the Serious Fraud Office (SFO) is to investigate the circumstances surrounding the collapse MG Rover back in 2005 did genuinely come as a […]
MPs have demanded a government-backed inquiry into the collapse of MG Rover is forced to publish its findings. The independent investigation began in June 2005 but has so far not reported any of its conclusions. In January it was revealed it had cost £11.8m. The Birmingham car maker went bust in April 2005 with the loss of 6,000 jobs. The business and enterprise committee of MPs has called for the findings to be made public, but the government has refused to set inspectors a deadline. The government called in fraud and insolvency specialists to help the official inquiry into the failure of the firm, which was bought by Nanjing Automobile Corporation in July 2005. ‘Community destroyed’ Mid-Worcestershire Conservative MP Peter Luff, who chairs the business and enterprise committee, said the inquiry had taken long enough.
From today’s “Financial Times Limited” come another story about the hopeful return of MG to the market. China’s Shanghai Automotive (SAIC) hopes to begin producing the MG TF roadster in Nanjing in May and at its plant in Longbridge, UK, within three months of that date, a senior executive said yesterday. But SAIC admitted the car’s long-awaited relaunch could be delayed again as it grapples with quality issues and rebuilds tooling bought in 2005 from bankrupt MG Rover and shipped to China by Nanjing Automobile (NAC), with which SAIC merged in December. “We want to begin production of cars at Longbridge as soon as possible, but the first priority for us is the quality of the product,” Chen Hong, SAIC’s president, told the Financial Times yesterday. “If we launch the product on the UK market and don’t have sufficient quality […]