§ Mr. MooreTo ask the Secretary of State for Trade and Industry what arrangements she has made with(a) Viasystems Group Inc and (b) others acting on its behalf in respect of the repayment of monies owed to the Government following the bankruptcy of the Viasystems Group Inc; and if she will make a statement. [96908]
§ Alan JohnsonWe have received payments totalling £3m to date. Following Viasystems Group Inc.'s application for Chapter 11, the US court has approved 1277W a revised settlement agreement between the DTI, Viasystems Group Inc. and Viasystems Inc. in respect of the remaining £9 million owed to the Government. Under this agreement the £9 principal will be repaid in instalments over the period 2008–2010. The DTI will receive interest on the outstanding principal at 3 per cent. per annum through to 2008, and thereafter at Bank of England base rate plus 2 per cent.
The DTI will also seek to recover the outstanding £9 million through the realisation of its charge over the former Viasystems Tyneside Limited site in North Tyneside. Any recoveries that are made under this realisation will be applied to principal payments due under the revised settlement agreement in reverse order of maturity.