Manganese Bronze to Enter Administration

Manganese Bronze Holdings plc, maker of the iconic London black taxi, has filed for court administration after its failure to raise fresh capital left it insolvent.

The Coventry, England-based firm says it expects PricewaterhouseCoopers to be appointed as administrator to supervise the reorganization of Manganese and its London Taxi Co. unit.

The company had reportedly lined up 30 million (€38 million) in credit lines and loans from its banks but was unable to negotiate the additional 10 million to 15 million (€12 million-€18 million) capital injection it expected from Geely. The Chinese automaker, which owns 20% of Manganese, is now considered a leading candidate to buy the company.

The cab maker has lost money for the past four years. It shocked investors in August when it disclosed it had understated past losses by 4 million because of accounting errors.

But analysts say the collapse was triggered when a defective China-made steering box forced Manganese to suspend sales and recall 400 of its XT4 cabs. The company warned the action would hurt its cash flow.

Cabbies were already unhappy with the TX4's poor quality and outdated engineering. Manganese has been losing business to Daimler, whose Mercedes-Benz Vito MPV cabs are more reliable and fuel efficient.