£5m Government loan means late reprieve for LDV
06 May 2009
Van manufacturer LDV has avoided going into administration after the Government agreed a £5m bridging loan to keep the company afloat.
Malaysian firm Weststar agreed to buy the company from Russian-owned Gaz yesterday, and the money is designed to keep LDV afloat while Weststar carries out due diligence.
But the Government emphasised that the move is a one-off.
"Weststar's proposed purchase of LDV offers the only credible chance of keeping this manufacturing plant in the UK," said business minister Ian Pearson.
"Whilst completion of the deal is not certain, it would have been irresponsible of the Government not to support it going forward.
"But this is a one-off bridging loan and it cannot be extended," he said.
LDV announced last week that it had applied for administration, and was due to have that formalised today. But that appears to have been staved off at the last minute.