MG Rover Ireland owes between €5 million and €7 million to a subsidiary of its parent group, according to Ireland.com.
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A number of sources reportedly have confirmed that the Irish company’s largest creditor is likely to emerge as MG Rover Exports, the company that supplied the stock to the motor distributor.
The report said the Irish subsidiary of the UK motor manufacturer was effectively placed in administration last April, along with its parent, after the Shanghai Motor Company announced it would not proceed with a planned investment.
While administration is a UK mechanism for insolvent companies, EU law allowed its subsidiaries within the European Union to be placed in administration along with the parent, Ireland.com said.
The report noted that the Irish company also has a number of other creditors, including Rover dealers, who are owed cash from rebates and warranties, and its former workers – its assets include debtors and car stocks, which dealers are continuing to sell.
Ireland.com said staff from PricewaterhouseCoopers, the administrator, met creditors in Dublin on Tuesday to outline the strategy for the company.
They reportedly also told the meeting that there was little prospect of a sale of the brand and other assets at this stage.
