A bank offer to help struggling MG Rover dealers shift unsold new and ex-demonstrator cars is being outlined at a meeting in the West Midlands on Monday.

The Daily Telegraph said HBOS car finance subsidiary Capital Bank is offering to foot a £25 million-plus bill to help the dealers clear a stockpile of 15,000 unsold cars, worth £165 million, left 'in limbo' following the car maker's collapse in April.

The way in which MG Rover dealers paid for their cars is intriguing.

According to the Daily Telegraph, Capital Bank technically became the owner of any car once it was past the factory gate - the dealer took over ownership on delivery, and paid interest on the car's value before it was sold.

The paper said the dealers could be flexible on price using a 20% discount paid for by the Longbridge plant but, since the car maker's collapse, have had to try selling MGs and Rovers at full price.

One dealer told the Daily Telegraph: "There are a lot of dealers who are being financially crippled by this deal with Capital Bank."

The paper said the bank's offer, negotiated last week, will allow dealers to cut more than 15% off the cost of 10,000 new and 5,000 demonstrator vehicles, while the bank will also provide "millions of pounds-worth" of administration costs, like issuing registration documents, and help with transporting the cars.

According to the Daily Telegraph, some dealers said that Capital Bank should be attending the meeting, rather than leaving the head of Rover's dealer group to outline the offer. The bank responded that it would contact the dealers later.