FORMER MG Rover workers could be in for a £300 payout after administrators said they were targeting £56million in overpaid VAT on vehicles supplied to fleet operators.
The MG Rover Group collapsed in 2005 with the loss of thousands of jobs. PwC, appointed as administrators the following year, have since then been liquifying the assets of the company after a buyer for the historic car maker failed to come forward.
So far PwC has managed to find £165million and processed and agreed more than 5,600 claims from unsecured creditors – including former employees and the Pension Protection Fund- worth £803million.
In all £80million has been returned to creditors – almost 10p in the pound – while some 4,000 claims from former employees in respect of their preferential claims have also been agreed and paid in full.
The administrators are now pursuing a number of claims, one of which relates to an overpayment of VAT of £56million on vehicles manufactured by MG Rover and supplied to fleet operators.
The matter is subject to litigation, as there are competing claims for the cash and a spokesman for PwC admitted that, should the entire amount be recovered it, would amount to a maximum of £300 each for former workers.
However Rob Hunt, partner at PwC, struck an upbeat note saying: “The MG Rover collapse was a significant event for a number of reasons – first and foremost for the many employees and families it impacted.
“The size and complexity of the job now sees us pass the ten-year milestone, but we have made significant headway in that time.
“We’ve returned almost 10p in the pound to creditors- double the 5p that was estimated at the start.
“Any further dividend to creditors depends upon recoveries from the remaining claims and we will continue to work hard for the many people affected by MG Rover’s collapse.”
Production at MG Rover stopped on April 8, 2005, when the firm, weighed down by more than £1billion in debts, closed its doors with the loss of 6,500 jobs.