MG Rover's new Chinese owner insisted last night its deal to buy the Longbridge carmaker was still on track amid rumours it had collapsed when it failed to raise a deposit.
Speculation mounted in the City yesterday that Nanjing Automobile was on the brink of pulling the plug on its £50 million agreement.
A source said: "The city has been awash with rumours that Nanjing cannot afford to buy Rover.
"They have been around the finance houses trying to raise money for the down payment.
"I have heard that they have asked everybody for money," the source added.
However, last night a spokesman for Nanjing, which beat off competition from two other bidders to buy the company, flatly denied the rumours.
He said: "The deposit has been with a bank in the United Kingdom for a while, it is quite strange these stories are coming out now.
"There is no problem with the deal at all, which will proceed as planned."
A spokeswoman for administrators Pricewaterhouse Coopers confirmed the deal would go ahead.
She said: "We are in the same position as Friday and the deal will go ahead."
The Nanjing spokesman said the company was pressing ahead with plans to assemble a management team to oversee its plans to revive the MG marque and launch a new range of cars.
Meanwhile, creditors of MG Rover who are owed £1.4 billion held a meeting in Birmingham yesterday to discuss the Nanjing bid.
The committee of creditors heard how they are likely to receive a "negligible" amount from the money they are owed, with the first sums not being paid until next year.
Rob Hunt, partner and joint administrator at PWC said: "At the time of the first creditors meeting we said the creditors were likely to receive only a negligible amount, and that remains the case.
"Much still needs to be done, including selling off some of the cars, and matching the claims made by the creditors to the statement of the accounts.
"This is clearly going to take some time, and it is going to be 2006 at the earliest that people are going to see any money.
"After our professional fees and the costs of running Longbridge have been taken into account, the amount is likely to be negligible."
Mr Hunt would not reveal the costs of the administration, but running Longbridge was estimated to cost around £1.5 million a week, while PwC ran up expenses of £4 million in the first two months of its appointment.
Meanwhile Nanjing Automobile said it was not in a hurry to sell major stakes in the British carmaker. Instead, it is looking to recruit experienced managers.
A spokesman said: "We are talking to a number of senior players with experience in this industry with a view to recruitment. We are looking for the right team and the right partners."
It had been claimed that Nanjing had approached rival unsuccessful bidders to sell a majority stake in MG Rover, just days after winning the deal.
"That is not our priority. We are talking to people and if something comes out of it we would be foolish to ignore it," the Nanjing spokesman said.
But it is not thought that either Martin Leach, the former Ford executive who worked with Shanghai Automotive on its failed bid, or Project Kimber, the David James consortium, is likely to be involved.
A party of executives from Nanjing is due to arrive in the Midlands this week to discuss with the unions and business leaders the future of the company.
A meeting which was due to take place yesterday was cancelled, although another is due to take place in due course, the Nanjing spokesman said.