Financial gains for Rover chiefs

The four owners of MG Rover could receive more than £1m each when a finance company they set up to help the Birmingham car maker is wound up.

MG Rover confirmed on Tuesday that John Towers, Peter Beale, John Edwards and Nick Stephenson have already been paid £100,000 each from MGR Capital.

The joint venture between the four men and HBOS bank allowed MG Rover to control its second hand car values.

MG Rover said the men had each made "a significant personal investment".

Survival 'important'

MGR Capital was formed in 2001 when former owner BMW sold off Rover's car finance firm.

The deal included 58,000 leasing contracts on Rover, MG and Mini vehicles taken out during BMW's ownership.

Loss-making MG Rover was unable to buy the business as the loans would show as a debt on its balance sheet.

The Northfield MP Richard Burden said: "Whatever views I or others have on the particular benefits packages are not important.

"The important thing is for MG Rover is able to survive as a British-owned independent car maker.

"Safeguarding the loan book was important as it contributed to the health of MG Rover."