Liquidators are to distribute almost £51 million to unsecured creditors of Longbridge’s MG Rover Limited – including former employees.
PwC have spent over ten years pursuing the recovery of funds from an overseas group company and has now received a pay out of £50.9 million from Germany.
Around 5,600 unsecured creditors – including former workers and suppliers – will receive a payment, with dividends of 6.3p in the pound being returned.
This brings the total return to everyone with admitted claims to 16.2p to date (a total of £130 million) – which PwC say is three times more than the original estimated recovery.
Around 6,500 workers lost their jobs when Longbridge based MG Rover went into administration in 2005. The company was liquidated in 2006.
Commenting on the MG Rover liquidation, 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.”
Liquidators at PwC are still pursuing further claims, hoping to secure further recoveries for creditors.
Any unsecured creditors, including former employees and suppliers, who have any queries regarding the recent dividend payments can contact PwC by email at email@example.com