Report on the Affairs of Phoenix Venture Holdings Limited, MG Rover Group Limited and 33 Other Companies

Download or read book Report on the Affairs of Phoenix Venture Holdings Limited, MG Rover Group Limited and 33 Other Companies written by Department for Business Innovation & Ski and published by Stationery Office/Tso. This book was released on 2009-09-11 with total page 896 pages. Available in PDF, EPUB and Kindle. Book excerpt: MG Rover Group Limited (MGRG) went into administration on 8 April 2005. On 31 May 2005 inspectors were appointed by the Secretary of State for Trade and Industry to investigate the affairs of Phoenix Venture Holdings (MGRG's ultimate parent company), MGRG, 32 other companies in the Group and MGR Capital Limited. This report addresses the period between the acquisition of MGRG by Techtronic Limited in 2000 and MGRG's entry into administration in 2005. It pays particular reference to the events leading up to the appointment of administrators of MGRG in April 2005 and the matters raised in a review of financial statements by the Financial Reporting Review Council (the FRRP review is included in the report as an exhibit). The inspectors criticise the unreasonably large financial awards to the four members of the Phoenix Consortium and the chief executive of MGRG. This report has been informed by documentary and computer evidence from numerous sources, including data from the Group's Longbridge site and national sales companies. 95 individuals were interviewed formally and 20 witness statements provided; all of these responses have been considered in this report.