Call To Seize £22m MG Rover Cash

(Press Association) – COLLAPSED CAR MAKER MG ROVER has a £22 million dowry left on the books that could be used to compensate thousands of car workers who lost their jobs, it has been reported.

The cash has remained with a car leasing business, called MGR Capital, that is linked to the now defunct Rover firm, according to the Daily Telegraph.

MGR Capital was reportedly co-owned by Halifax Bank of Scotland — part of State-controlled Lloyds Banking Group — and some of the original Rover directors.

The firm is said to have been wound up last August with £22 million on its books, thanks in part to a VAT clawback in 2005.

HBOS is understood to have taken control of all of the cash and now the Government is reportedly facing calls to hand it out to some of the 6,000 former Rover staff who were left out of work when the Birmingham-based car maker collapsed in April 2005.

MPs with constituencies close to the former Longbridge car plant are asking Lord Mandelson, the Business Secretary, to look at whether the Government’s position in Lloyds could help it seize the cash, said the Telegraph.

MGR Capital lent money to customers wanting to buy MG and Rover cars.
It was one of those firms investigated by the then Department for Trade and Industry.

The long-awaited report into the collapse of MG Rover will be published next month after the Serious Fraud Office (SFO) confirmed recently it would not begin a criminal investigation.

The Department for Business, Innovation and Skills said it would publish the independent inspectors’ report, which took four years and cost £16 million, on September 11th.

2 Responses

  1. 4 well loved British names in these two pieces Ted. Are you trying to tell us something?

    I always wanted an MG but they are made in China now aren’t they? The Jag was always too expensive for me but I have very fond memories of my Rover.

    What about you?

    • I too had a Rover – until the cam-belt went and destroyed every bloody valve in the engine! I was down on my luck in those days and could not afford the repair bill. I ended up selling it to my mechanic for a song!

      I particularly like the Japanese cars these days. I always wanted a Lotus Elan; but I’ve settled for a Mazda MX5 in that late car’s homage. It is everything that car was and more.

      Early morning; winding B roads; rising sun; top down – and trying not to exceed the 60mph speed limit.

      Wonderful… :-)

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