The joint administrators of MG Rover Group Limited have short-listed several bidders for the defunct automaker’s assets.
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Bids closed a week ago and PricewaterhouseCoopers (PwC) has spent this week examining the offers.
“Interest in the MGTF sports car business has been narrowed down to three potentially viable proposals, which will now be explored in detail to see if one of these can be transacted, and discussions for the sale of the rest of the business and assets are continuing with two credible interested parties,” PwC joint administrator Tony Lomas said in a statement.
“We are still discussing a sale of the rest of the business and assets with two credible interested parties. They are particularly concerned to understand what rights [Chinese automaker] SAIC or other third parties have in physical assets at [the ] Longbridge [factory] and in the intellectual property rights.
“We can now provide them with a lot more positive information regarding these points as we have further examined the matter.”
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By GlobalDataLomas added: “While there is still an outside possibility that some form of car production could recommence at Longbridge, the cost and complexity of the challenge should not be underestimated.
“Engine production would be a lesser, but still very demanding, challenge. The potential buyers are known to be looking at the alternative scenarios of continuing production at Longbridge or relocating it elsewhere.
“While efforts to sell the business continue, we are progressively downsizing the support functions in order to further reduce costs. Around 400 people are still employed at MG Rover, helping us mothball the facilities and support car sales activities in the UK and Europe. A further 110 people are employed at Powertrain undertaking similar roles.”
“We will be posting letters to creditors early next week, notifying them of a meeting on 10 June at which we will report on the companies’ affairs,” the PwC statement concluded.
