BusinessBusiness RecoveryMG Rover bill £5m and rising

MG Rover bill £5m and rising

Collapse of Rover provides windfall for accountants, with firms earning at least £5m for advice

The five firms engaged to advise on aspects of stricken carmaker MG Rover’s
collapse and sale have already earned at least £5m, with the figure expected to
rise considerably.

The Rover collapse has provided much work for accountants, according to
figures obtained by Accountancy Age, with the Big Four each involved in
advising various parties, and mid-tier firm BDO Stoy Hayward working for the DTI
as the official investigator.

The DTI said this week, in response to a Freedom of Information Act request,
that Gervase MacGregor, the BDO partner working as the investigator, and his
firm had earned £1,090,890 in fees, disbursements and VAT between the 31 May and
31 August – more than £10,000 a day.

The DTI also disclosed KPMG’s fees in relation to the carmaker. The firm was
paid £340,325 for its work.

PricewaterhouseCoopers said in June that it had earned £4m as administrators
for Rover, a figure that is certain to have risen.

A spokeswoman for the firm declined to give any breakdown of the fees since,
saying its work with Rover’s creditors was ‘ongoing’.

Ernst & Young advised Shanghai Automotive, and has not disclosed how much
it was paid for the work.

Deloitte, MG Rover’s former auditors, is facing investigation by disciplinary
body the AIDB over its audit work on Rover. It earned an annual audit fee of
about £300,000.

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