Chapter 9: Property and share transfers at the end of 2001 In December 2001 steps were taken to transfer some companies from MGRG to other companies owned by PVH's subsidiary firms, of which MGRG had no interest - including the title to MGRG's Longbridge site to subsidiary firm Property Holdings.
However, MGRG received only pounds 40.49 million of the proceeds, as that was the book value of the sale to Property Holdings.
The report states: "While MGRG obtained the benefit of the sales to AWM and Redman Heenan in cash terms, the transfer of the Longbridge land to Property Holdings will nonetheless have disadvantaged MGRG and its creditors.
The report's author's said: "We conclude that the reason the leaseplan company was to be owned by the Phoenix Partnership (and not MGRG) was that the four members of the Phoenix Consortium saw an opportunity to make money for themselves."
Chapter 11: Aircraft: Exploiting tax losses MGRG incurred trading losses from 2000 until 2004.
Chapter 12: Project Patto Project Patto was another scheme from which the members of the Phoenix Con-sortium could potentially have derived very substantial benefits, based on a pounds 427 million interest-free loan from BMW when Techtronic acquired MGRG in May 2000.
This chapter examines the management of Xpart - which had its profits shared between Xpart and MGRG - and the sale for pounds 32 million to Caterpillar Logistics Services in 2004.
At the time, they claimed this was to create more management focus on individual businesses but the report concluded that this was done to ring-fence parts of the business from MGRG liabilities and ended up reducing transparency, contrary to claims.
Chapter 16: Financial and trading performance of MGRG between 1999 and 2004 This chapter looks at the financial and trading performance of MGRG between 1999 and 2004.
Chapter 18: Powertrain This looks at how in 2000, shortly before the sale of MGRG to holding company Techtronic, what had been MGRG's engine and gearbox manufacturing business was transferred to Powertrain, a shell company bought for the purpose.
The report asks why Powertrain was purchased by Techtronic and not MGRG - the report's authors were told that Powertrain was acquired by Techtronic, rather than by MGRG, partly because Ford wanted to ensure that Powertrain would continue to supply its engines in the event that MGRG failed.
Chapter 19: Joint ventures While loans from BMW meant there was no prospect of MGRG failing in the short term, longer-term survival depended on it successfully concluding a joint venture arrangement.