THE co-ordinator of a group that battled for compensation for ex-MG Rover workers says they are "still waiting" to see if former employees will receive a slice of £56million in overpaid VAT.

John Towers, Peter Beale, John Edwards and Nick Stephenson, the four executives of Phoenix Venture Holdings (PVH), dubbed the “Phoenix Four”, bought the Longbridge-based firm for £10 in 2000, going on to pay themselves £40 million.

The firm collapsed in 2005 and over the past decade the Advertiser has reported on the battle for compensation by the Justice for Rover Workers group.

But promises of four-figure payouts to ex-workers from a trust fund were crushed after a claim from HBOS, and the group later conceded defeat.

About £165 million has been recovered by liquidators PwC and distributed to those who lost money when MG Rover collapsed, but most who lost jobs have only received about £600 each.

Unions and members of the Justice for Workers group have led the fight over the decade for more compensation.

It has now emerged PwC is attempting to recover the £56m. If the entire amount is recovered and is passed on to the former Longbridge workers, they would each be in line for a £300 payout - but the matter is subject to litigation as there are competing claims as to who is entitled to the repayment.

Rob Hunt, partner at PwC, said: "The MG Rover collapse was a significant event for a number of reasons – first and foremost for the many employees and families it impacted.

"MG Rover was part of the engine house of the Midlands economy and it was a major shock to witness its demise.

"The size and complexity of the job now sees us pass the 10-year milestone, but we have made significant headway in that time.

"We’ve returned almost 10p in the pound to creditors- double the 5p that was estimated at the start.

“Any further dividend to creditors depends upon recoveries from the remaining claims and we will continue to work hard for the many people affected by MG Rover’s collapse.”

Oliver Thomas, a former MG Rover employee and co-ordinator of the Justice for Rovers Workers Group, said he wrote an open letter to John Towers questioning if the "fresh" money would be made available to the ex-workers.

Writing on the Justice for Rover workers website, Ollie said: "I've been speaking with the Phoenix representatives about my letter.

"I'm being told they are going to discuss it 'soon' and that they will get back to me. We're waiting. Still waiting.

"I honestly don't know what they will say but I point out to them again that the workers worked hard at Longbridge during their five year ownership."