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Concern and confusion over MG Rover payout

There is concern and confusion over a proposed £12.5 million payout to former MG Rover car workers which was promised by the former directors of the company. Despite the fact that it is five years since the company went under, and the directors agreed to put aside £12.5 million to compensate workers, HBOS has apparently stepped forward with a £23 million debt claim.

While the so-called "Phoenix Four" believe that the claim by HBOS has no foundation and is "fundamentally and morally wrong" it is likely to at best delay any potential compensation for workers and at worst wreck the compensation program. While HBOS quite rightly has a duty to chase all outstanding debts there is concern as to why it's taken so long to come forward with this claim. It is also bizarre to think that five years after the company collapsed there is still no payout for former workers.

The UK government was heavily involved in the original buyout of MG Rover and attracted significant criticism itself. However, there have been a number of investigations by the government into the saga and lessons do appear to have been learned. Unfortunately, this does not help former workers at the company who are now desperate for compensation.

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