FORMER MG Rover workers in Bromsgrove who have waited seven years for a four-figure payout have received a major blow to their fading hopes of ever seeing the money.

And it has emerged former employees could receive just £3 each in compensation - unless personal donations are made by the carmaker’s former owners.

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 and paid themselves £40m in pay and pensions.

When the company collapsed in 2005 directors promised to set up a trust fund putting in what would amount to thousands of pounds for each of the workers who lost their jobs.

But after nearly seven years 6,500 former employees are still waiting for their money which has failed to materialise.

PVH say money for the fund, said to be around £12 million that was secured by directors, has been the subject of a legal battle with banking giant HBOS.

It has now been reported that the High Court has rejected a claim against HBOS by PVH lawyers, who had been seeking to prove the banking giant should not have withdrawn the £12 million.

HBOS has argued they were owed the money for shareholders and taxpayers, and did so as a creditor through the normal channels after the firm’s collapse.

It has been revealed to campaigners that only £22,000 sits in the trust fund coffers, which means ex-workers are in line for a tiny payout of £3 each.

The spotlight has now fallen on the former directors who Bromsgrove MP Sajid Javid says should take more responsibility.

“Workers have now been waiting for seven years for the Phoenix Four to make good on their promise to help them,” he said.

“I want the former directors to give something back to those who lost their livelihoods.

“A good start would be for the four to honour their 2005 pledge to help those who were made redundant.”

Oliver Thomas, a former Longbridge employee and co-ordinator of the Justice for Rovers Workers Group, said: “It is very sad that after all the promises and years of waiting, our hopes now depend on a plea to the ex-owners.

“They took £42m out of MG Rover - with potentially £12 million more yet to come to them - these guys are wealthy men.

“Most people in Bromsgrove are either directly affected or will know someone who is.

“To promise ex-workers this money and fail to live up to it is both immoral and cruel."

Attempts to contact PVH proved unsuccessful before the Messenger went to press.