MG Rover trust fund cash could go to charity
Aug 15 2012
A trust fund set up to help ex-workers of MG Rover is to be wound up and the cash it holds may be given to charity – and former employees of the failed automotive giant are being polled for suggestions.
The trust fund was set up following the collapse of the firm in 2005. It was to help MG Rover’s 6,500 employees who lost their job with no redundancy pay. It was meant to be funded by the proceeds of selling MG Rover’s assets, estimated to be worth £30m-£50m.
However, the trust fund never actually received any additional cash over the £23,000 originally used to set it up. The assets of MG Rover were, basically, worthless.
It meant each former worker would have received just £3.
In recent years, it was hoped the sale of MG Rover’s former conference centre and some of its old dealers could raise £12.5m for the fund, to help former workers made redundant by the firm. However, this cash has since gone to creditors of a bank owed money by MG Rover.
MG Rover collapsed in 2005 with debts of more than £1 billion. The firm was sold by BMW to the ‘Phoenix Four’ in 2000, for a nominal £10 but never managed to strike a deal with another large automotive giant to secure its future.
The doors finally closed after the government declined yet another request for aid.
The support group for former MG Rover workers, Justice for Rover Workers, will now decide what to do with the cash: suggestions are being welcomed through the group’s Facebook page.
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