[ROVERNET - UK] Latest Phoenix press release - the End!
peterhut at melbpc.org.au
Sat Apr 16 04:49:28 BST 2005
Latest Press Release from Phoenix:
"15 April 2005
Phoenix Venture Holdings Ltd
During the course of this past week the administrator, PWC, the Trades
Unions, the DTI and members of the management team have explored every
avenue aimed at avoiding todays redundancy announcements.
Clearly, not enough progress has been made on this to provide comfort
for the administrators, and for the DTI, to continue the payment
process that began last week.
In May 2000, when Rover was saved from BMWs liquidation process, a
lot of people said that the business could not last for more than 14
months. The management and employees of MG Rover have defied those
conventional predictions and worked tirelessly to create a positive
result. Almost five years later, and within weeks of what we believe
to be its natural long-term outcome, it is devastating to be stopped
at the final hurdle.
In a meeting with the administrators this afternoon, the directors of
PVH discussed whether any other possibilities, including use of PVH
and personal assets, could provide a further mechanism to allow
employees to continue to be paid. The conclusion of this discussion
was that the best use of those assets would be to quickly realise
their value for the benefit of the Trust established to benefit the
families and dependants of the Longbridge workforce.
This will enable the initial Trustees, Carl Chinn and Nigel Petrie, to
start providing financial assistance to the employees of Longbridge,
and their families. We can also announce that the Bishop for
Birmingham, has approached us, and has agreed to become a Trustee of
In addition to the many millions of pounds being made available for
the Employee Trust, we are also committed to provide any other support
that the administrators request in creating the best possible
employment outcome for this business emerging from insolvency.
Despite a concerted view to the contrary, we remain hopeful that car
making at Longbridge is not at an end.
For all of us this is a desperately sad day. Our hearts go out to all
of our employees, their families, and the local community, at this
John Towers, Peter Beale, John Edwards, Nick Stephenson"
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