17 May 2012
Former MG Rover workers to get £3
Former workers of MG Rover are set to receive compensation of £3 each, despite a seven-year campaign to retrieve funds from the collapsed car maker. Members of the employee trust fund and local MPs have called for the former owners of MG Rover — the so-called Phoenix Four — to make personal donations to the former employees.
Around 6,500 workers will share £22,000 after Phoenix Venture Holdings lost a court hearing this month against the liquidators of MG Rover. The ruling prevents them from claiming £12.5 million paid out to Lloyds Banking Group from the car company.
The Phoenix Four were last year barred from being company directors for a combined total of 19 years, following the collapse of MG Rover. They awarded themselves £42 million in pay and pensions over five years, after buying MG Rover from BMW for £10 in 2000.
Lloyds said: “As a major lender to MG Rover, we made losses from its collapse. We therefore have a duty to our shareholders, including the tax-payer, to try to minimise these losses.”