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Vanmaker LDV faces administration | Vanmaker LDV faces administration |
(about 4 hours later) | |
Vanmaker LDV is expected to be placed in administration by a court later, threatening up to 850 jobs and thousands more in the supply chain. | |
Attempts to sell Birmingham-based LDV as a going concern have failed. | |
Talks with one potential buyer, the Malaysian firm Weststar, broke down at the last minute last weekend, leading LDV to apply for administration. | Talks with one potential buyer, the Malaysian firm Weststar, broke down at the last minute last weekend, leading LDV to apply for administration. |
Administrators could liquidate LDV's assets and it is feared any buyer would take machinery abroad. | Administrators could liquidate LDV's assets and it is feared any buyer would take machinery abroad. |
Such a move would end decades of production at the Washwood Heath site. | Such a move would end decades of production at the Washwood Heath site. |
LDV managers and workers were angered last week when they were forced to cancel a planned lobby of Parliament because of Prime Minister Gordon Brown's cabinet reshuffle. | LDV managers and workers were angered last week when they were forced to cancel a planned lobby of Parliament because of Prime Minister Gordon Brown's cabinet reshuffle. |
Directors had hoped to persuade the government to agree to a £60m loan to secure the firm, but no ministers were available to meet them. | |
Near-standstill | Near-standstill |
The firm claimed the loan would have cost the state much less than the collapse of the business will. | The firm claimed the loan would have cost the state much less than the collapse of the business will. |
In addition to the workforce, LDV employs 1,200 people in dealerships and is a major customer for local suppliers. | In addition to the workforce, LDV employs 1,200 people in dealerships and is a major customer for local suppliers. |
The Washwood Heath plant has been at a near-standstill since before the end of 2008 during the search for a new owner. | The Washwood Heath plant has been at a near-standstill since before the end of 2008 during the search for a new owner. |
Weststar had agreed a deal to acquire the company from its Russian owners, with the aim of restarting production in July. | Weststar had agreed a deal to acquire the company from its Russian owners, with the aim of restarting production in July. |
The government pledged a £5m four-week loan until the deal was sealed, after the firm said it intended to maintain production at the Birmingham plant and expand manufacturing in Malaysia. | The government pledged a £5m four-week loan until the deal was sealed, after the firm said it intended to maintain production at the Birmingham plant and expand manufacturing in Malaysia. |
However, Weststar pulled out at the last minute. | However, Weststar pulled out at the last minute. |
BBC business reporter John Moylan said: "This signalled the end of the road for the company which was once part of British Leyland." | BBC business reporter John Moylan said: "This signalled the end of the road for the company which was once part of British Leyland." |