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Administration deadline for LDV Administration deadline for LDV
(41 minutes later)
Remaining staff at struggling van maker LDV have been sent home, after the firm applied to enter administration.Remaining staff at struggling van maker LDV have been sent home, after the firm applied to enter administration.
Birmingham-based LDV employs about 800 people in its factory - though most have been on reduced hours during 2009 or not working at all. About 800 people are employed at its Birmingham factory - though most have been on reduced hours or not working at all, with production largely halted.
Employees have been paid up to the end of last week, it said, but the firm could not confirm any further payments.Employees have been paid up to the end of last week, it said, but the firm could not confirm any further payments.
LDV said it would continue to look for funding until 6 May when it is due to formally go into administrationLDV said it would continue to look for funding until 6 May when it is due to formally go into administration
There are about 1,200 people employed in LDV dealerships, with it estimating "several thousand" people are employed by its suppliers. There are about 1,200 people employed in dealerships, and LDV estimates that "several thousand" staff are employed by its suppliers.
'Exceptional conditions''Exceptional conditions'
The firm has suffered from the broader decline in demand for commercial vehicles in the UK. The firm has suffered from the broader decline in demand for commercial vehicles in the UK with registration of new LDV vans down by 73% in March from a year previously, according to the SMMT.
Registration of new LDV vans was down by 73% in March from a year previously, according to the SMMT. LDV TIMELINE November 15: Announces 10% cut in workforce and implements extended holiday January: Applies for support with the European Investment Bank under its package for green vehicle industryJanuary 14: LDV announces it is to extend Christmas break further and requests dialogue with governmentJanuary-March: Discussions with UK government about support for management buyoutMarch: Buy-out plans presented to staff who vote to accept 10% pay cut in support of itMarch 31: Foreign investor meets UK government, which maintains that LDV owner Gaz or a foreign investor must support the company. April 28: LDV applies to enter administration
However it has had long-running problems and has made a loss for the last four years. However, it has had long-running problems and has made a loss for the last four years.
It said that it had been relying on the goodwill of suppliers to stay afloat, but that it had run out of money. LDV said that it had been relying on the goodwill of suppliers to stay afloat, but that "the actions of a small number of suppliers" had caused the firm's position to reach a point where it had "no alternative" other than to apply for administration.
"During the past few weeks, the global economic crisis has forced us to operate in exceptional conditions and we cannot continue in this position without funding indefinitely," chief executive Evgeniy Vereshchagin said in a letter to staff."During the past few weeks, the global economic crisis has forced us to operate in exceptional conditions and we cannot continue in this position without funding indefinitely," chief executive Evgeniy Vereshchagin said in a letter to staff.
'Worrying' 'Worrying development'
Plans for the future of the business have included a management buy-out, with proposals to begin making electric vans from the end of the year.Plans for the future of the business have included a management buy-out, with proposals to begin making electric vans from the end of the year.
The firm has held talks with UK government ministers over possible government support for a buy-out and a bridging loan enable it to secure funding from the European Investment Bank. The firm has held talks with UK government ministers over possible government support for the buy-out, and a bridging loan enable it to secure funding from the European Investment Bank.
But ministers suggested that the firm focused on getting more finance from its Russian-owner, Gaz, or from elsewhere. But ministers suggested that the firm should focus on getting more finance from its Russian-owner, Gaz, or from elsewhere.
"This is clearly a worrying development for the company and its employees. We are monitoring the situation closely," a spokesman for the business department, BERR, said. The application for administration was "clearly a worrying development for the company and its employees", said a spokesman for the business department, BERR.
"We have made it clear to potential investors that, once the company is on a sound footing, it would be eligible to apply for a range of government support, but the first responsibility for putting the company on a sound footing rests with the current owner and a potential investor.""We have made it clear to potential investors that, once the company is on a sound footing, it would be eligible to apply for a range of government support, but the first responsibility for putting the company on a sound footing rests with the current owner and a potential investor."
Malaysian investor, Westar, had been interested in the company - but it is now thought unlikely to invest.Malaysian investor, Westar, had been interested in the company - but it is now thought unlikely to invest.
Last month, Erik Eberhardson, the chairman of LDV's Russian owner Gaz, said he believed that LDV could be saved and that a management buyout was the best option.Last month, Erik Eberhardson, the chairman of LDV's Russian owner Gaz, said he believed that LDV could be saved and that a management buyout was the best option.
The cancellation of the 2010 British International motor show and a record drop in UK car production are the latest signs of trouble for a sector that has experienced tough times for months.The cancellation of the 2010 British International motor show and a record drop in UK car production are the latest signs of trouble for a sector that has experienced tough times for months.
Do you work for LDV? How have you been affected by the firm's problems? Send us your comments and experiences using the form below.Do you work for LDV? How have you been affected by the firm's problems? Send us your comments and experiences using the form below.
A selection of your comments may be published, displaying your name and location unless you state otherwise in the box below.A selection of your comments may be published, displaying your name and location unless you state otherwise in the box below.
The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & ConditionsThe BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions