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Re: MG Rover 'not in administration'

To: "eric" <>, "MG List" <>
Subject: Re: MG Rover 'not in administration'
From: "Paul Hunt" <>
Date: Sat, 9 Apr 2005 15:52:01 +0100
Yes, which is one step short of receivership.  The administrators will try
to sell the company as a 'going concern' i.e. as is and to continue
production.  However since that is what MG Rover themselves have been trying
to do for several years personally I don't hold out much hope.  Price
Waterhouse Coopers are handling it, and they will want paying, a lot of
money for this type of activity usually, where that will come from I don't
know.  If they can't find a buyer then it will go into receivership and be
sold off piecemeal for what they can get.  The receivers will get first bite
at the takings, then any secured creditors like banks, and anything is left
after that will be spread amongst the unsecured creditors like suppliers and
workforce i.e. owed pay, redundancy and pension fund.  Although if the
pension fund is owned by the company (as it often is) it will be treated as
one of the assets and distributed as above, in which case the workers could
end up with nothing.  The directors pension fund is held in trust and so
ring-fenced and cannot be used to settle MG Rover debts ...

----- Original Message ----- 

> Looks like the admin may have finally happened - according to our news
> here tonight!

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