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LDV vans close to a rescue deal Government lends £5m for LDV deal
(about 1 hour later)
Struggling van maker LDV has moved close to a last-ditch deal with Malaysian investor Weststar to save the firm, securing hundreds of jobs. The UK government is lending £5m to Malaysian firm Weststar, which has agreed to take over struggling UK van maker LDV.
The deal will stave off administration on Wednesday, but the loan would have to be repaid after four weeks, says BBC chief economics correspondent Hugh Pym.
The last-ditch deal will secure, for now, hundreds of jobs.
The Birmingham-based business and plant has been at a near standstill since before Christmas.The Birmingham-based business and plant has been at a near standstill since before Christmas.
About 800 people are employed at LDV's Birmingham factory and about 1,200 people employed in dealerships.About 800 people are employed at LDV's Birmingham factory and about 1,200 people employed in dealerships.
It is understood LDV and Weststar have reached a deal, but that it relies on short-term UK government financing. It is understood LDV and Weststar had reached a deal earlier in the week, but that it relied on short-term UK government financing.
Talks between LDV, Weststar and the government are believed to be continuing to finalise a deal.
LDV had been looking for funding, or a rescue deal, before Wednesday, 6 May, when it is due to formally go into administration.LDV had been looking for funding, or a rescue deal, before Wednesday, 6 May, when it is due to formally go into administration.
It is not yet known whether it will still go into administration.
In February, LDV asked the government for a bridging loan because it was "literally running out of cash".In February, LDV asked the government for a bridging loan because it was "literally running out of cash".
At the time the government said the taxpayer could not be expected to pay for the company's losses, but that talks with LDV were "ongoing and regular".At the time the government said the taxpayer could not be expected to pay for the company's losses, but that talks with LDV were "ongoing and regular".
LDV - which was put up for sale by its Russian owner Gaz late last year - has a long-term association with Weststar making LDV commercial vehicles in Malaysia.LDV - which was put up for sale by its Russian owner Gaz late last year - has a long-term association with Weststar making LDV commercial vehicles in Malaysia.