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TVR administrators optimistic of finding a buyer

The administrators of Blackpool Automotive Ltd, the production arm of TVR, say they are optimistic that a purchaser will be found for the business and assets of the company.

In a statement, PKF (UK) LLP partners and joint administrators Kerry Bailey, Matthew Gibson and Philip Long said: "We are seeking to clarify the ownership of certain assets.

"On behalf of Blackpool Automotive Limited, the workforce was made redundant on Thursday as the administrators had not been placed in funds to meet the wages.

"Making employees redundant will allow them to receive benefits and claim under insurance policies, and will also trigger the possibility of claims to the Redundancy Payments Office.

"We have endeavoured to keep the workforce and union informed as much as possible since our appointment and will continue to do so."

TVR itself is not for sale. Russian owner Nikolai Smolenski has indicated that production will move to Italy.

The potential bankruptcy of Blackpool Automotive Ltd, a subsidiary company created in June 2006 as part of TVR's restructuring, is thought to be part of a wider business strategy which will effectively bring to an end TVR's UK operation.

By putting its British assets into the hands of administrators, TVR bosses will write off large outstanding debts and may be protected from future financial claims if production moves abroad.

The most likely source for such claims will be TVR's ex-employees, who may have to settle for the Government's minimum redundancy pay.

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