UK: LDV discussions with government continuing
Near to bankrupt van maker LDV is reportedly still involved in talking with the UK government about short-term funding to ensure its survival, despite the governement's cool response to the idea of bridging finance earlier this week.
Talks were held on Tuesday between business minister Ian Pearson, members of the LDV management and Erik Eberhardson, the outgoing GAZ appointed chairman who is leading a proposed management buy-out (MBO).
"Discussions are continuing and we continue to believe there is a viable long-term future for LDV," LDV management, Eberhardson and local MP Liam Byrne said in a joint statement after the meeting.
The UK government has said it is GAZ's responsibility to provide funding for LDV.
"In the absence of support from GAZ, we cannot see a case for further assistance from the government beyond the previous 24 million pound loan, which has not been repaid, and other support made more recently," the Department for Business, Enterprise & Regulatory Reform (BERR) said earlier this week.
LDV claims that its MBO plan is being progressed with prospective funding from the European Investment Bank (EIB) and that it needs bridging support before that funding becomes available. The plan evisages LDV becoming a colume producer of electric vans.
Calls to LDV this week requesting further clarification of the MBO plan have not been returned.