BusinessCompany NewsRover administrators secure government loan

Rover administrators secure government loan

Government offers Rover £6.5m loan to pay its staff.

Administrators for MG Rover have confirmed that they have received a £6.5m loan from the government to pay the wages of employees at the stricken car company for the next week.

Link: PwC set to preside over MG Rover collapse

The PricewaterhouseCoopers administrators said they intended to reopen talks with the Chinese company Shanghai Automotive Industry Corporation.

Ian Powell, partner PricewaterhouseCoopers said: ‘Since our appointment on Friday, we have worked with management, unions and the Government to assess the situation. We are pleased to have secured this funding which has given us vital breathing space to evaluate the interest of all parties. However, this funding must be viewed in context – it is a small step forward.’

Fellow administrator and PwC partner, Tony Lomas, added: ‘There is a possibility that our appointment as administrators creates an opportunity to resolve some of the concerns around the previous deal, and we now seek to engage in discussions with SAIC as soon as possible.’

Rover entered administration under PwC on Friday. The majority of the Rover workforce has been sent home on full pay.

Last week, the government also announce a £40m package of aid for suppliers of Rover should the car company go out of business entirely.

The money is intended to pay for business advice and training for staff.

Suppliers are reported to be owed £25m by Rover.

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