(Yuk - sorry about that formatting stuff up AND the crossposting)
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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