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PwC examines bids from potential MGR buyers

Three companies have come forward as potential buyers of MGTF, its administrators PricewaterhouseCoopers has revealed this afternoon.

PwC said it had asked for proof of funding for the three, unidentified, companies bids and would now be making detailed analysis of each bid. Discussions for the sale of the rest of the MG Rover business, which went into administration at the start of April, PwC says are continuing with two ‘credible’ parties.

Tony Lomas, joint administrator and partner PricewaterhouseCoopers says: “We are still discussing a sale of the rest of the business and assets with two credible interested parties. They are particularly concerned to understand what rights SAIC or other third parties have in physical assets at Longbridge and in the intellectual property rights. We can now provide them with a lot more positive information regarding these points as we have further examined the matter.

“While there is still an outside possibility that some form of car production could recommence at Longbridge, the cost and complexity of the challenge should not be underestimated. Engine production would be a lesser, but still very demanding, challenge. The potential buyers are known to be looking at the alternative scenarios of continuing production at Longbridge or relocating it elsewhere.”

“While efforts to sell the business continue, we are progressively downsizing the support functions in order to further reduce costs. Around 400 people are still employed at MG Rover, helping us mothball the facilities and support car sales activities in the UK and Europe. A further 110 people are employed at Powertrain undertaking similar roles.”

“We will be posting letters to creditors early next week, notifying them of a meeting on 10 June at which we will report on the companies' affairs.”

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