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| Version 4 | Version 5 |
|---|---|
| Government lends £5m for LDV deal | Government lends £5m for LDV deal |
| (4 days later) | |
| The UK government is lending £5m to Malaysian firm Weststar, which has agreed to take over struggling UK van maker LDV. | 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 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 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. |
| Weststar is yet to formally accept the deal. | Weststar is yet to formally accept the deal. |
| 'Credible chance' | 'Credible chance' |
| 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. |
| "Weststar's proposed purchase of LDV offers the only credible chance of keeping this manufacturing plant in the UK," said business minister Ian Pearson. | "Weststar's proposed purchase of LDV offers the only credible chance of keeping this manufacturing plant in the UK," said business minister Ian Pearson. |
| "Whilst completion of the deal is not certain, it would have been irresponsible of the government not to support it going forward. | "Whilst completion of the deal is not certain, it would have been irresponsible of the government not to support it going forward. |
| "But this is a one-off bridging loan and it cannot be extended." | "But this is a one-off bridging loan and it cannot be extended." |
| It is understood LDV and Weststar had reached a deal earlier in the week, but that it relied on the short-term UK government financing. | It is understood LDV and Weststar had reached a deal earlier in the week, but that it relied on the short-term UK government financing. |
| LDV had been looking for funding, or a rescue deal, before Wednesday, 6 May, when it was due to formally go into administration. | LDV had been looking for funding, or a rescue deal, before Wednesday, 6 May, when it was due to formally go into administration. |
| 'Long way to go' | 'Long way to go' |
| Following the news of the government loan, Tony Woodley, joint general secretary of trade union Unite, said: "We are delighted at the government's backing for this company." | Following the news of the government loan, Tony Woodley, joint general secretary of trade union Unite, said: "We are delighted at the government's backing for this company." |
| He added: "There's a long way to go yet but now thoughts can turn to building a serious and successful future for this company, and to getting these men and women, who have not built a vehicle in months, back to work." | He added: "There's a long way to go yet but now thoughts can turn to building a serious and successful future for this company, and to getting these men and women, who have not built a vehicle in months, back to work." |
| 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. |