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rover_800
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Phoenix Four make a big return on £10 business

Ian Griffiths
Saturday April 2, 2005
The Guardian


The four men credited with saving MG Rover and the chief executive they brought in have made £40m out of the business they bought for £10 in 2000.



The Phoenix Four and chief executive Kevin Howe have drawn salaries of more than £11m and benefited from £17m of payments into private trust funds.

Former Rover executive John Towers along with Midlands car industry executives John Edwards, Nick Stephenson and Peter Beale led the Phoenix consortium which bought MG Rover in May 2000. The Phoenix Four went on to create a private company Phoenix Venture Holdings, which they control and which owns MG Rover.

</IMG>The Phoenix Four have collected almost £12m in interest and capital payments on loan notes given to them as part of the corporate restructuring which followed the purchase of the car company.


A Guardian investigation last year suggested that Phoenix Venture Holdings controls businesses and assets, excluding MG Rover, with a value of around £70m.

Through a complex financial restructuring, the core MG Rover car business, which is still making huge losses, has been isolated from a number of profitable associate businesses also under the Phoenix umbrella. The Phoenix Four are also benefiting from an investment in MGR Capital, a joint venture with HBOS, which was set up to manage car leases retained by BMW after the sale of MG Rover.
 

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If you enter MG Rover into the search function on The Guardian website you can see all the MG Rover related articles. Glance at the most recent ones and you will find one or two articles reporting that Ian Grifiths picked up an award at a journalists award ceremony for his investigation into MG Rover.
 

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rover_400_95_99
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Buggerit!! and I told them to sod off when they asked for my 35p coffee money,I could have been rich !!:***:
 

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The Phoenix Four and chief executive Kevin Howe have drawn salaries of more than £11m and benefited from £17m of payments into private trust funds.
So six blokes with quite considerable responsibilities in the multi million pound high risk automotive sector have each been paid aprox. £400k per anum for their efforts. That's quite a bit less than even the head of design would receive from an outfit like Daimler-Chrysler, Volvo et al...

F'r instance, a story circulating a while ago was that VAG, having decided that they were finally managing to build cars that looked good, were well built, and didn't break down too often, but just didn't handle and couldn't go round corners at any respectable speed, decided to poach the great Richard Parry-Jones from Ford, the man behind the superb Focus platform. Sadly for them he declined their approaches and to Volkswagens horror they discovered that his package was quite a bit better than the then Chairman of the whole VAG empire, Ferdinand Peich!

And you know who, VAG's current CEO Bernd Pischetsrieder is paid euro 2.5 million...
 

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cityrover
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Makes you wonder how they would have commented on Jon Moulton of Alchemy - I think we all know how that would have ended up!
 

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mg_6_gt
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The press would have praised him because he would have ended this country's history of building affordable cars, and scaled-down Longbridge to the extent that it could never compete on the world stage again.
 
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