A senior UK government minister is organising talks between banks and a potential buyer for van maker LDV according to a British media report.
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The firm – owned by GAZ – yesterday applied to enter administration after it ran out of cash.
The Birmingham Post said that Liam Byrne, MP for Hodge Hill and the Minister for the Cabinet Office, is helping Malaysian vehicle importer Weststar to negotiate with British banks.
The firm is seen as a potential saviour for LDV, which could close within a week after directors called in administrators.
Gordon Brown, the prime minister, said yesterday that the UK government was willing to offer support for the firm, which is based in Washwood Heath, in Mr Byrne’s constituency – but only if it could produce a viable business plan.
Possible assistance is likely to come in the form of a bridging loan to keep LDV alive while it waits for the European Investment Bank to approve an application for a GBP53m credit line.
But the Department for Business, Enterprise and Regulatory Reform (BERR) has made it clear that no taxpayers’ money will be available unless it is convinced the cash will be returned.
A proposed management buyout has not materialised.
Weststar’s attempts to secure funding overseas were unsuccessful, but they could still step in and save the firm if they can hammer out a deal with a British bank within a week, the newspaper said.
Mr Byrne, who insists LDV can still have a bright future, is assisting them with negotiations, The newspaper said.
The MP said: “A deal is close – with a new investor big enough to back LDV’s shift into the ‘green van’ market.”
See also: LDV files for administration
