BusinessBusiness RecoveryKPMG-Land Rover in possible settlement

KPMG-Land Rover in possible settlement

A settlement between car maker Land Rover and KPMG, the receivers of its collapsed chassis supplier UPF-Thompson is said to be in the final stages.

It is believed Land Rover will sign a £15m to £16m deal to rescue its chassis supplier after it went into administration with £50m-worth of debt. In return, KPMG it thought to have agreed to allow UPF to continue delivering chassis.

Previously, the car giant rejected demands to pay £35m in goodwill and refused to buy the company for £51.6m. It took KPMG to court to force it to allow UPF to deliver the car components.

The money paid by Land Rover is roughly equal to the value of its order book. Land Rover’s first offer was £4m in goodwill payment and a 20% rise in the chassis price.

A Land Rover spokeswoman said the parties were still in negotiation, but could not confirm or deny the rumours.

KPMG was unable to comment.

The deal is expected to be officially announced later this week.

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