BusinessBusiness RecoveryPwC throws doubt on government’s Rover cash

PwC throws doubt on government's Rover cash

Administrator claims £6.5m injection was made despite a deal being 'highly unlikely'

The government’s pre-election injection of cash into doomed car maker MG
Rover was made following a warning from administrator PwC that it was ‘highly
unlikely’ the company would be sold as a going concern, it has been revealed.

The Department of Trade and Industry handed over £6.5m just before May’s
election in a bid to keep Rover’s 6,000 workers on for another week in the hope
that a deal could be worked out to sell the company.

However, PwC partner Tony Lomas, one of Rover’s administrators, told the
Financial Times that he had become very sceptical that a deal could be
done with the Shanghai Automotive Industry Corporation, and refused to risk any
more of the company’s cash.

The government is currently facing an inquiry by the National Audit Office
into how the money was spent.

Lomas claimed that the DTI refused to rule out the possibility of a deal with
SAIC when it handed over the cash, as the administrators had been unable to get
in touch with the far-eastern group over that weekend.

Related Articles

Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

4d Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

4d Emma Smith, Managing Editor
KPMG appoints new global head of insolvency

Business Recovery KPMG appoints new global head of insolvency

3w Emma Smith, Managing Editor
EY hired by Carillion to review finances

Accounting Firms EY hired by Carillion to review finances

5m Alia Shoaib, Reporter
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

6m Emma Smith, Managing Editor
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

Business Recovery UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

8m Alia Shoaib, Reporter
Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

Business Recovery Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

9m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor