LONGBRIDGE, England, April 11 (UPI) -- Stricken car maker MG Rover has been granted a $12.3 million loan by the British government to cover costs while it seeks a takeover deal.
Ian Powell of PricewaterhouseCoopers, which took over administration of the company Friday, said Monday the funding would enable Rover to maintain its workforce for one week while seeking to salvage a deal with Shanghai Automotive Industry Corps.
Car production would not yet resume, he said, adding most of the company's 6,000 employees had been sent home on full salary.
MG Rover had been posting losses of $37 million to $47 million a month, administrators said.
However Tony Woodley, general secretary of the Transport and General Workers Union, said the chances of a deal with Shanghai Automotive Industry Corps being reached were "a million to one."
Speaking at a press conference Monday, Woodley blamed "unforeseen nervousness" on the part of the Chinese corporation for the collapse of negotiations Friday.
However doubt has been cast over the Department of Trade and Industry's ability to lend money to the company. The European Commission says the loan -- which qualifies as state aid -- must be approved by Brussels, which has requested details.
