Van firm applies for administration

Van firm applies for administration

Directors of van manufacturer LDV have been forced to reapply for administration after essential funds to maintain the business and workforce as a going concern had not been made available, the firm has announced.

The surprise move led to staff being sent home from the Birmingham-based company, which was at the centre of a last-ditch takeover in May.

Malaysian giant Weststar announced that it had entered into an agreement with LDV's owner, GAZ, to acquire its entire interest in the van firm.

The agreement to buy LDV, which employs 850 workers, was subject to due diligence, financing and various approvals.

LDV halted production in Birmingham in mid-December after a huge slump in demand for vans but withdrew an application for administration after the deal was announced.

The Government offered a bridging loan of up to £5 million to help with the sale of LDV, some of which has been used.

In a brief statement, LDV said: "The directors of LDV Group have been forced to reapply for administration to protect the assets of the business.

"This is due to the fact that essential funds required to maintain the business and workforce as a going concern are not being made available."

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