Christmas windfall for MG Rover directors

[m0sko]

Just saw the latest news about MG Rover:

VILIFIED Phoenix Four directors Peter Beale and John Edwards are in line for a massive multi-million pound Christmas bonus from the remnants of the Longbridge empire, it was revealed today.

The two former Longbridge bosses, who with fellow directors John Towers and Nick Stephenson have already enriched themselves to the tune of around £9 million each, will be entitled to another huge cash windfall next month.

Liquidators recently appointed to MGR Capital Ltd – MG Rover’s finance and lease loan book – revealed that another potential fortune would be available for shareholders Beale and Edwards after December 11.

The date has been pencilled in by liquidators Begbies Traynor for creditors to apply for compensation from MGR Capital, a solvent company boasting shareholder funds of £23,232,000 at the end of 2008.

With only the Inland Revenue as a creditor, the vast majority of the £23 million plus sum will be available for potential share-out before Christmas between the two ex-Phoenix directors and fellow shareholder HBOS.

But Northfield Labour MP Richard Burden today reiterated calls for Beale and Edwards to hand over their millions to the trust fund for ex-employees and a community development trust in Longbridge.

Mr Burden said: “There is a very large amount of money there and, however you cut it, that money came out of operations related to the Rover Group and associated companies.

“If there is going to be any positive legacy out of the Phoenix years, that money has got be put to socially beneficial uses. Part of that should be to the trust fund for former employees and part to a community development trust for the area.

“The idea that that amount of money should just go for personal gain is wrong. Ultimately history will judge them (the Phoenix directors).

“There is a chance for Peter Beale and John Edwards to hand over large sums of money. If they do not do that, people will say that they were in it for what they could get. Their reputations are in their own hands now.”

A spokesman for Phoenix Venture Holdings said he was unable to say whether the two ex-directors would take the money after December 11.

He said: “I do not know. We are not thinking that far ahead – they are not counting any chickens in terms of what might be in the fund.

“This was a loss-making company; it was a risk and it made profits because it was well-managed by HBOS and the directors. During the lifetime of MG Rover, £23 million was paid or transferred from MGR Capital into the car-making operation.”

Liquidator Paul Stanley, of Begbies Traynor, said: “MGR Capital was a solvent company which has not traded for years. The creditors will get paid first, with interest, and if there is any money left over, it is available for shareholders. After December 11, money will be available.”

Article from Birmingham Mail

[Fraser Mitchell]

Well fair enough, but we would not have had the 75 beyond about 2001, nor any ZTs at all if the Phoenix directors had not taken over from BMW. John Moulton, the alternative purchaser was going to shut most of the place and only produce sports cars. So whilst it seems very unfair, at least we have a large number of 75s and ZTs to choos from, and even the V8s !!

[Christopher]

Damn! Misread that! Thought it said "Club Directors ..."

[bluey9]

Hope they use some of the dosh to buy a great big Christmas turkey that when undercooked gives em the trots til February.

[JohnDotCom]

This was the profitable side and see no reason not to let them have it.
Nothing to do with Rover Cars as such.
Company has gone and we should move on and just get on with life.

[Wolves 75]

Originally Posted by JohnDotCom

Company has gone and we should move on and just get on with life.

Im sure the ex employees and the people of Longbridge would not agree with this, Longbridge has gone from one of the best areas in Birmingham to a shell of its former self, they should be forced to had all monies to the community and employees who lost everything due to the closure of mgr, The Phoenix already bagged about 9 million each, whilst family's went hungry, surely they will see the right thing to do, unless greed is such a monster, then they will be judged by the big man upstairs............

[Scribbler.]

Do the right thing ..... hahaha yes and tomorrow the tooth fairy. They have been well rewarded on top of their fat-cat salaries, enough is enough, plough the remaining cash back into the ex-Rover workers and the areas worst affected. Mike. .... Whatever happened to INTEGRITY etc ....

[Mike]

there was never such a thing as a 'profitable side' of MGR. The Phoenix four broke up the company to create the illusion of 'profit' in the finance arms by building loss into the car building business.

Mediocre middle line managers who thanks to a desperate Govt. hit the jackpot and devastated the lives of many - nuff said

[StevenWilliams]

Originally Posted by Wolves 75

Im sure the ex employees and the people of Longbridge would not agree with this, Longbridge has gone from one of the best areas in Birmingham to a shell of its former self, they should be forced to had all monies to the community and employees who lost everything due to the closure of mgr, The Phoenix already bagged about 9 million each, whilst family's went hungry, surely they will see the right thing to do, unless greed is such a monster, then they will be judged by the big man upstairs............

Those same people would have been made redundant or felt the losses far sooner had BMW closed the plants rather than sell them to the Pheonix Group.

[e668ecp]

This company was nothing to do with MG Rover.. it was the finance arm which HBOS bought together with the P4 privately from BMW

BMW + Government + Press + Buying Public sank MG Rover not the P4