(AFP) – Oct 22, 2012
LONDON — The company that makes London's iconic black taxis collapsed into administration on Monday but was hopeful of receiving a financial rescue amid reports of a possible Chinese lifeline.
"Manganese Bronze Holdings PLC, the manufacturer of the world famous London taxi, today announces that discussions with various parties to secure funding on acceptable terms to address the group's financial needs have proved unsuccessful.
"The board has therefore concluded that the group is no longer a going concern and has filed notice of intention to appoint administrators," the company said in a statement.
"The board remains hopeful that the fundamental strengths of the company... and its global reputation will provide the platform for a successful business in the future," it added.
Reports said the firm, based in the city of Coventry, central England, was in talks with Chinese private automaker Geely, which owns 20 percent of Manganese, over a possible loan worth £15 million ($24 million, 18.4 million euros).
Manganese was recently forced to recall hundreds of its taxis owing to a safety defect in its new TX4 model. The firm that employs almost 300 staff also recently said that its half-year losses had widened to £3.6 million.
Administration refers to the process whereby a troubled company calls upon independent expert financial help in a bid to remain operational.
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