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LONDON, April 8 (Xinhuanet) -- MG Rover, Britain's last independent carmaker,
has gone into receivership after rescue talks with a potential Chinese partner
failed, the British government said on Thursday.
The receivership is a form of bankruptcy protection under whicha
court-appointed third party takes control of the business.
"MG Rover has announced that their board has decided to call inthe
receivers," Trade and Industry Secretary Patricia Hewitt told a press
conference.
The carmaker has been struggling to break even since it was sold four years
ago by Germany's BMW to four businessmen in central England.
The government has been making efforts to help the 100-year-oldcompany
reach an agreement with China's Shanghai Automotive Industry Corp. (SAIC) before
the general election in May to prevent it from collapsing with the loss of
several thousand jobs.
MG Rover and SAIC have been in talks for six months to create ajoint
venture that would give SAIC a foothold in Europe and rejuvenate the model range
of Rover, but the deal appears to have stalled.
Earlier Thursday, MG Rover said it had halted production at itsLongbridge
plant in Birmingham, central Britain, and called on thegovernment to firm up its
offer of a 100 million pound (190 million US dollars) bridging loan to keep the
company solvent and assist the proposed deal. Enditem |