Phoenix Four pay out £3m to creditors

Nov 27 2009 by Edward Chadwick, Birmingham Mail

THE company owned by the former bosses of MG Rover has paid £3 million to creditors of the firm, it was revealed today.

The so-called Phoenix Four have agreed to pay the sum to a liquidator almost five years after the collapse of Longbridge.

It will be distributed by PricewaterhouseCoopers among about 5,000 creditors who include former factory workers.

It is understood the Phoenix Venture Holdings (PVH) agreed to pay the money after an investigation by government inspectors.

The Longbridge-based firm folded in 2005, with the loss of 6,000 jobs.

The Phoenix Four – John Towers, Nick Stephenson, John Edwards and Peter Beale – transferred MG Rover assets to PVH while they were in charge of the company. They paid themselves £42 million in salary and pensions.

The latest monthly accounts published by the liquidator show a £3 million payment direct from PVH.

Phoenix Four spokesman Ian Strachan said today that the money had come from MG Rover and would not affect the amount available to the employees’ trust fund when PVH was wound up next year. The fund would receive a sum “in the millions”.

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”.

Mr Strachan added: “All the assets from the Phoenix Group will transfer into the employees’ trust fund.”