Page last updated at 18:14 GMT, Wednesday, 31 March 2010 19:14 UK

MG Rover staff still waiting for payout

MG Rover plant in Longbridge
A government-commissioned report looked at the collapse of MG Rover

Creditors and former staff of MG Rover could have to wait for another 12 months before receiving any money owed to them, the BBC has learned.

The business, based in Longbridge, Birmingham, folded in April 2005, leaving debts of more than £1bn. Up to 6,000 staff lost their jobs.

Some creditors have been repaid but liquidators said their investigations into repayments had been "lengthy".

A former staff member said the wait was "totally unjust".

ANALYSIS:
Peter Plisner, West Midlands Transport Correspondent

Former MG Rover workers form the bulk of the creditors to the collapsed company.

About 5,000 of them are owed money in lieu of redundancy entitlements. Some of the workers are in need of it.

Many are unemployed or in jobs that pay much less than they were earning at Longbridge.

According to figures released to the BBC, the average worker is owed £9,000, although the money they will receive will be less than that.

Soon after the collapse administrators suggested unsecured creditors were likely to get back 5p for every pound they were claiming.

The good news is that two payments totalling 6p in the pound have been made and a further payment is due.

Unfortunately, that payment will not be made until MG Rover is wound up and that may not happen for another 12 months.

Paul Inett said: "It is totally unjust we have been waiting for so long. People have suffered hardship."

About 6,000 people are still waiting to be paid, the BBC understands.

BBC West Midlands transport correspondent Peter Plisner said that according to documents he had seen, administrators had managed to get back £100m and some payments had been made.

Rob Hunt, an MG Rover liquidator, said it had not been easy and it was a complex case.

"The focus of our work over the last few years has firstly been recovering value from overseas assets.

"Secondly, dealing with over 6,000 claims worth £1bn," he said.

"Thirdly, we have a number of claims which we have to provide for and are not yet fully resolved."

He added that liquidators had always known it would be a long-running process.



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