LONDON (Reuters) -- Creditors of MG Rover may struggle to get 1 percent of the 1.4 billion pounds ($2.6 billion) they are owed, a source close to the situation told Reuters.
MG Rover's administrators PricewaterhouseCoopers sent letters this week to more than 8,000 creditors, including staff laid off after the carmaker filed for bankruptcy at the beginning of April.
Creditor claims total 1.4 billion pounds ($2.56 billion) compared to assets worth only 80.5 million pounds after sales to preferred creditors, PricewaterhouseCoopers said in the letters.
While those figures leave creditors facing the prospect of getting back five pence on the pound, the source said they might struggle to recover between one and two pence on the pound.
"The numbers are going to be very, very small," he said.
MG Rover creditors include a pension fund with a 415 million pound deficit, as well as suppliers, employee benefits, the government and BMW, which sold MG Rover to Phoenix Venture Holdings for 10 pounds four years ago.
The carmaker faces total liabilities of 1.8 billion pounds, PricewaterhouseCoopers said.
The administrators have called a meeting of creditors in Birmingham, central England on June 10 to consider options for the company's future.
PricewaterhouseCoopers, which is working toward the sale of the company's brand names, plant and machinery and vehicle stock, said the most likely option was placing the company into creditors' voluntary liquidation.
It remains in talks with several interested buyers although sources have said the sale of the business as a going concern is highly unlikely.
The 100-year-old carmaker collapsed in April after it ran out of money, resulting in more than 4,000 layoffs to date.