Liquidators at PwC will distribute a further £5.2 million to unsecured creditors related to the collapse of MG Rover Group 14 years ago.

In December, liquidators of MG Rover Group distributed a dividend of £50.9 million to unsecured creditors.

This was as a direct result of more than ten years of work by PwC pursuing the recovery of funds from an overseas group company, working closely with the German liquidator.

One of the beneficiaries of the latest dividend is Powertrain, which is now making a fourth interim distribution to around 1,700 creditors including 1,200 staff, as a result of the funds received in December.

Powertrain manufactured engines and gearboxes and was part of MG Rover Group, operating a base at its factory in Longbridge.

 

MG Rover Group went into administration in 2005, leading to 6,000 employees losing their jobs.

Partners from PwC were appointed as administrators, with the process converting to liquidation a year later.

This latest payout brings the total returned to date to Powertrain's unsecured creditors to 39.74p, over four dividend payments totalling £43.7 million.

Matthew Hammond, PwC Midlands region chairman, said: "We are delighted to be able to make this further payment to Powertrain creditors, including many former employees.

"The significant further realisations in late 2018 mean we are able to distribute an additional £5.2 million to Powertrain creditors.

 

"We have now returned almost 40p in the pound to Powertrain creditors, which is a great result at this stage of a liquidation process for former employees and suppliers, and is pleasing compared to initial estimates.

"The collapse of the MG Rover Group impacted many families and communities.

"Our teams working on this case have brought to life one of our key purposes of solving important problems - in this case the size and complexity of the MG Rover Group and enabling a significant return to creditors."

PwC is continuing to pursue further claims across the group which could lead to more recovery for unsecured creditors.