Van maker expected to avoid administration after government loan
6 May 2009

LDV vans may have been saved from administration after a last minute deal was announced.

It is understood that Malaysian company Weststar is poised to take over the company, following the offer of a £5 million four-week loan by the government.

Moves to put Birmingham-based LDV into administration are now expected to be deferred at a court hearing.

The LDV factory has been at a standstill since before Christmas, and 850 jobs were at risk. Thousands of workers at associated companies could have also lost their jobs.

Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, said, "I think it does signal that there are now investors out there taking a longer-term view and they see the UK motor industry as being a good investment - an industry that has a strong future, particularly one that is already ahead and embracing the low-carbon agenda.”

The government is expected to make a statement on the future of LDV this afternoon.

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