Monday, February 23, 2009

Van firm LDV seeks government aid

After weeks of speculation LDV have approached the Government to seek a loan for a management buyout to save the company.

Struggling van-maker LDV has asked the government for millions of pounds in loans to help secure its future.

It wants access to bridging loans to tide it over while it presses ahead with plans for a management buy-out.

The company, which employs 900 people in Birmingham, has seen sales plummet and suspended production in December.

The management buy-out of the firm, currently owned by Russian energy giant Gaz, aims to make it into the first big producer of electric vans in the UK.

Gaz is controlled by oligarch Oleg Deripaska, a friend of Business Secretary Lord Mandelson.

BBC business correspondent Martin Shankleman said the request for state help could cause Lord Mandelson political difficulties, after he was entertained by Mr Deripaska on his yacht over the summer.

The company is warning the failure of its plans could cost 900 jobs directly and thousands more among suppliers.


Full Story at the BBC

LDV suspended payments to suppliers in January, and have produced no vehicles this year.

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