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Former Rover bosses pay back £3m Former Rover bosses pay back £3m
(about 5 hours later)
The company owned by the ex-bosses of MG Rover has paid back some of the millions of pounds taken out of the car maker, the BBC has learned.The company owned by the ex-bosses of MG Rover has paid back some of the millions of pounds taken out of the car maker, the BBC has learned.
Phoenix Venture Holdings, the firm owned by the so-called "Phoenix Four", paid £3m to the liquidator almost five years after the firm's collapse.Phoenix Venture Holdings, the firm owned by the so-called "Phoenix Four", paid £3m to the liquidator almost five years after the firm's collapse.
It is understood it agreed an out-of-court settlement after investigations by inspectors and liquidators.It is understood it agreed an out-of-court settlement after investigations by inspectors and liquidators.
The Longbridge-based firm collapsed in 2005, with the loss of 6,000 jobs.The Longbridge-based firm collapsed in 2005, with the loss of 6,000 jobs.
'Agreement reached''Agreement reached'
When the so-called Pheonix Four were in charge of MG Rover, some of the car maker's assets were effectively transferred to Phoenix Venture Holdings (PVH). When the so-called Phoenix Four were in charge of MG Rover, some of the car maker's assets were effectively transferred to Phoenix Venture Holdings (PVH).
ANALYSIS Peter Plisner, BBC Midlands Today transport correspondent News that some of the millions of pounds of assets taken out of MG Rover have been returned will be welcomed by some former MG Rover workers, although when the £3m is distributed to the 5,000 creditors, including some of those how used to work at Longbridge, each payment will not be very much. What many former MG workers are waiting for are the proceeds of a trust fund set up by the Phoenix Four soon after the collapse of the company. There had been hopes that the fund would have paid out by now. Originally it had been thought that the publication of the long-awaited government-commissioned report into the collapse of MG Rover would clear the way for funds to be paid out. But those hopes were dashed when a Phoenix spokesman announced that payments would only be made after the winding up of Phoenix Venture Holdings, the company owned by the Phoenix Four, had been completed. That process could take months and there are continued concerns that when it is completed, and debts paid off, there might not be that much left to distribute to the former workers.
In September, a report into MG Rover's collapse revealed a number of transactions that liquidators and inspectors have been looking into.In September, a report into MG Rover's collapse revealed a number of transactions that liquidators and inspectors have been looking into.
BBC Midlands Today transport correspondent Peter Plisner said a report compiled by the MG Rover liquidator "clearly shows a payment of £3m which I understand has come directly from PVH."BBC Midlands Today transport correspondent Peter Plisner said a report compiled by the MG Rover liquidator "clearly shows a payment of £3m which I understand has come directly from PVH."
A statement from PVH said: "All inter-company transfers were approved by the company's accountants and professional advisers and were part of normal business."A statement from PVH said: "All inter-company transfers were approved by the company's accountants and professional advisers and were part of normal business."
It also confirmed that "negotiations with liquidators regarding the transfers" had taken place and that "an agreement has been reached which will further benefit creditors of MG Rover".It also confirmed that "negotiations with liquidators regarding the transfers" had taken place and that "an agreement has been reached which will further benefit creditors of MG Rover".
MG Rover collapsed in 2005
The government-commissioned report found the bosses had awarded themselves pay and pensions worth £42m, which was described by inspectors as "out of all proportion".The government-commissioned report found the bosses had awarded themselves pay and pensions worth £42m, which was described by inspectors as "out of all proportion".
In September, the long-awaited report into the collapse of the UK's last major car firm said its bosses had given themselves "unreasonably large" pay-outs.In September, the long-awaited report into the collapse of the UK's last major car firm said its bosses had given themselves "unreasonably large" pay-outs.
However, the executives described the report, which cost £16m, as a "witch-hunt" and a "whitewash for the government".However, the executives described the report, which cost £16m, as a "witch-hunt" and a "whitewash for the government".
The Serious Fraud Office previously said it did not intend to begin a criminal investigation into the collapse of MG Rover.The Serious Fraud Office previously said it did not intend to begin a criminal investigation into the collapse of MG Rover.