British government offers MG Rover loan
Following reports at the end of last week that British carmaker MG Rover had called in administrators, the British government announced on Monday that it has offered the ailing company a £6.5 million loan in attempt to keep the company afloat. The loan is intended to pay the 6,000 workers’ wages at the company’s Longbridge plant in
MG Rover filed for bankruptcy protection after a deal for the Shanghai Automotive Industry Co (SAIC) to take over the car manufacturer collapsed due to the Chinese company airing doubts over Rover’s future.
The loan has been offered after crisis talks were held over the weekend, in the hope that talks with the Chinese company can start again and that a deal can be salvaged. The crisis has hit at a particularly sensitive time for Tony Blair's government, following the announcement last week that a general election will be held May 5, 2005.
