This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8035128.stm
The article has changed 15 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| LDV takeover near after £5m loan | LDV takeover near after £5m loan |
| (about 1 hour later) | |
| Malaysian firm Weststar is said to be on the verge of taking over LDV after the troubled van maker was offered a £5m four-week loan from the government. | Malaysian firm Weststar is said to be on the verge of taking over LDV after the troubled van maker was offered a £5m four-week loan from the government. |
| Negotiations between the company, LDV and UK government officials continued into the night to finalise the deal and avoid administration. | Negotiations between the company, LDV and UK government officials continued into the night to finalise the deal and avoid administration. |
| The company had been set to go into administration on Tuesday, raising redundancy fears for 850 workers. | |
| Thousands working at other companies would also have lost their jobs. | Thousands working at other companies would also have lost their jobs. |
| Business minister Ian Pearson said a sale to Weststar offered a chance of keeping the factory in the UK. | Business minister Ian Pearson said a sale to Weststar offered a chance of keeping the factory in the UK. |
| We are delighted at the government's backing for this company Tony Woodley, Unite | We are delighted at the government's backing for this company Tony Woodley, Unite |
| A deal would bring some rare good news for the beleaguered motor industry, which has been battered by the recession. | A deal would bring some rare good news for the beleaguered motor industry, which has been battered by the recession. |
| Guy Jones, a spokesman for LDV, told the BBC: "This is not the end of the process but it is very good news for everybody. | Guy Jones, a spokesman for LDV, told the BBC: "This is not the end of the process but it is very good news for everybody. |
| Advertisement | Advertisement |
| Ex-LDV worker on company's problems | Ex-LDV worker on company's problems |
| "This is a significant step. This is the government getting involved, which we've asked them to do for a long time. | "This is a significant step. This is the government getting involved, which we've asked them to do for a long time. |
| "It is important to stress this is not a deal being done but they are going to provide assistance for a a deal to be completed." | "It is important to stress this is not a deal being done but they are going to provide assistance for a a deal to be completed." |
| The government has made it clear the aid was a one-off bridging loan which could not be extended. | The government has made it clear the aid was a one-off bridging loan which could not be extended. |
| 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. |
| Mr Pearson said: "Whilst completion of the deal is not certain, it would have been irresponsible of the government not to support it going forward." | Mr Pearson said: "Whilst completion of the deal is not certain, it would have been irresponsible of the government not to support it going forward." |
| 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 they were "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 they were "delighted at the government's backing for this company". |
| "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 said. | "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 said. |
| 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. |
| Are you affected by the issues in this story? Do you work for LDV? Send us your comments. | Are you affected by the issues in this story? Do you work for LDV? Send us your comments. |
| The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions | The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |