£23 million Longbridge MG Rover fund left in limbo
Aug 31 2010 by Jon Griffin, Birmingham Mail
MORE than £23 million raised from the remnants of the collapsed Longbridge Phoenix empire could lie untouched for years – because of a mystery Government claim.
Insolvency experts appointed to handle the liquidation of MGR Capital Ltd – MG Rover’s finance and lease loan book – have now warned that the distribution of cash could be held up indefinitely.
They say the Pensions Regulator has thrown a spanner in the works of any payouts by giving notice to liquidator Paul Stanley of a potential £21 million claim on the cash.
The notice from the quango means that MGR Capital joint shareholders the Phoenix Four and banking giant HBOS cannot be allocated the funds until the Pensions Regulator claim is rejected or approved.
