A British businessman attempting to make and badge new MGs has been arrested.
Will Riley made headlines when he bought the MG Sports and Racing name from MG's administrators, PriceWaterhouse Coopers two years ago. He then announced he would build and sell X Power coupes using the company's name.
He immediately ran into a legal battle with MG buyer Nanjing, which paid £53 million for MG and claimed it alone had the rights to use the company's name and logo. Those court proceedings are ongoing.
Now he has been arrested on suspicion of theft.
The allegations of theft follow a complaint to the Police by a Canadian businessman, who had been working with Riley. He claims that he accepted an X Power coupe prototype in lieu of payment, and that he worked for nine months to try to find investors in the project.
However, he alleges that when the car arrived in Canada its interior was unfinished and he sent it back. He then saw it for sale in an internet auction and that it was subsequently crashed.
Riley is also being taken to court by staff who claim they have worked for months without pay.
However, Riley has issued counter claims against his staff, and told the Birmingham Post that his plans to build and sell X Power coupes are unchanged.