(Pardon the cross post - it obviously concerns both lists)
15 April 2005
Phoenix Venture Holdings Ltd
Statement:
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 that fund.
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 terrible
time.
John Towers, Peter Beale, John Edwards, Nick Stephenson
===
Eric
'68 MGB MkII
'85 ROVER SD1 Vanden Plas
Adelaide, South Australia
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