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Deloitte sets appeal date for MG Rover fine

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22nd Sep 2014
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Deloitte’s appeal against part of the 'record' £14m fine for its business advice to collapsed car-maker MG Rover will start on 29 September, according to the Financial Reporting Council.

In September last year, the FRC fined the Big Four firm for failing to manage conflicts of interest in its advice to MG Rover which collapsed in 2005 with debts of £1.4bn.

It also issued a “severe reprimand” to Deloitte and fined its partner, Maghsoud Einollahi, £250,000.

The appeal only relates to one of the transactions, known as Project Aircraft – a complex transaction which involved using tax losses of MG Rover to offset the profits of a finance leasing company for aircraft.

Deloitte can appeal six of the FRC’s 13 findings.

MG Rover was put into administration in 2005 with debts of £1.4bn and the loss of 6,000 jobs. Four of its directors - aka the "Phoenix Four" - set up a company to buy the loss-making car-maker for a token £10 five years earlier.

Deloitte said in a statement: “We did not agree with the main conclusions of the original tribunal and are pleased that we have the opportunity to present our case to the appeal tribunal.”

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