'Phoenix Four' hold back on £30m Rover trust vow
By Christine Buckley, Industrial Editor
THE directors of MG Rover are refusing to hand over remaining assets of the collapsed carmaker to a workers’ trust fund despite making a pledge to do so immediately after it plunged into administration, The Times has learnt.
The “Phoenix Four”, who have amassed personal worth of at least £40 million through Rover, have told trustees of the scheme that their solicitors are now advising against a handover of assets that could be worth up to £30 million. In April the four directors, led by John Towers, promised to pass over all remaining assets to a workers’ trust fund to be shared out among the 6,100 people who lost their jobs.
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But yesterday they cancelled a meeting with the trustees, which include the Bishop of Birmingham, a union leader and a community activist, saying that their solicitors had told them not to hand over anything while an inquiry is pending from the Department of Trade and Industry. That inquiry could last more than a year and it is not clear why it should be an impediment to handing over assets.
Richard Burden, Labour MP for Birmingham Northfield, said: “This is ridiculous. The trust fund has nothing to do with the DTI inquiry. People have needs now and they should hand over the assets as they said they would do.”
Eric MacDonald, an officer with the T&G union and a trustee, said: “We are extremely unhappy about this last-minute change of mind on the solicitors’ advice. We understood very clearly that the Phoenix Four had made an absolute commitment to hand over the assets to this trust fund for their hard-working and loyal former employees and we expect them to honour it.”
The four directors have also decided to sever all communications with the media after the departure of their spokesman, Daniel Ward, who has take a position with JCB.
Mr Ward said: “They have decided they don’t want to talk to the media at all. Any inquiry about the trust fund should go to the Bishop of Birmingham or Carl Chinn (a local historian and community activist).”
The office of the Bishop of Birmingham, who will soon become the Archbishop of York, said that they would be unable to answer inquiries on behalf of the trustees and that documents to establish the fund had not yet been signed.
Mr Chinn said that he was very unhappy about the problem with the trust and was awaiting the directors’ explanation.
A refusal to hand over assets is likely to sully further the reputation of the four, who have been heavily criticised over their pay.
Former MG Rover workers also remain in the dark over their pensions after a disagreement between independent trustees appointed to the schemes and the directors. An actuary is soon to determine how much liability Phoenix Venture Holdings, which remains trading, should bear. So far it has paid £1.7 million. Its solvency has prevented the pension schemes from entering the Government’s Pension Protection Fund.
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By Christine Buckley, Industrial Editor
THE directors of MG Rover are refusing to hand over remaining assets of the collapsed carmaker to a workers’ trust fund despite making a pledge to do so immediately after it plunged into administration, The Times has learnt.
The “Phoenix Four”, who have amassed personal worth of at least £40 million through Rover, have told trustees of the scheme that their solicitors are now advising against a handover of assets that could be worth up to £30 million. In April the four directors, led by John Towers, promised to pass over all remaining assets to a workers’ trust fund to be shared out among the 6,100 people who lost their jobs.
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But yesterday they cancelled a meeting with the trustees, which include the Bishop of Birmingham, a union leader and a community activist, saying that their solicitors had told them not to hand over anything while an inquiry is pending from the Department of Trade and Industry. That inquiry could last more than a year and it is not clear why it should be an impediment to handing over assets.
Richard Burden, Labour MP for Birmingham Northfield, said: “This is ridiculous. The trust fund has nothing to do with the DTI inquiry. People have needs now and they should hand over the assets as they said they would do.”
Eric MacDonald, an officer with the T&G union and a trustee, said: “We are extremely unhappy about this last-minute change of mind on the solicitors’ advice. We understood very clearly that the Phoenix Four had made an absolute commitment to hand over the assets to this trust fund for their hard-working and loyal former employees and we expect them to honour it.”
The four directors have also decided to sever all communications with the media after the departure of their spokesman, Daniel Ward, who has take a position with JCB.
Mr Ward said: “They have decided they don’t want to talk to the media at all. Any inquiry about the trust fund should go to the Bishop of Birmingham or Carl Chinn (a local historian and community activist).”
The office of the Bishop of Birmingham, who will soon become the Archbishop of York, said that they would be unable to answer inquiries on behalf of the trustees and that documents to establish the fund had not yet been signed.
Mr Chinn said that he was very unhappy about the problem with the trust and was awaiting the directors’ explanation.
A refusal to hand over assets is likely to sully further the reputation of the four, who have been heavily criticised over their pay.
Former MG Rover workers also remain in the dark over their pensions after a disagreement between independent trustees appointed to the schemes and the directors. An actuary is soon to determine how much liability Phoenix Venture Holdings, which remains trading, should bear. So far it has paid £1.7 million. Its solvency has prevented the pension schemes from entering the Government’s Pension Protection Fund.
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