The UK government has apparently rejected cash-strapped LDV’s plea for ‘bridging’ loan finance. However, the van maker is still appealing for talks.
LDV, owned by Russia’s GAZ (part of oligarch Oleg Deripaska’s business empire) is said to be a matter of days from running out of money and is claiming it needs support to put in place an MBO that would involve European Investment Bank participation.
However, Whitehall officials have appeared unsympathetic to the idea of a government loan.
Responding to the statement from BERR rejecting LDV’s request for support, Erik Eberhardson, leader of the management buyout, said:
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“We want to explore every avenue possible to save the company and the jobs. We still think that the company has a strong potential future as an electric van manufacturer, and the new ownership team, which is separate from GAZ, is prepared to invest its resources in that new venture if the government is able to give a short term loan.
“We are ready to sit down and talk with the government at any stage about what commitments each party is able to put in. We hope the government will accept our invitation to do so.”
UK: LDV seeks government bridging loan
