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/8088531.stm

The article has changed 5 times. There is an RSS feed of changes available.

Version 2 Version 3
Van firm LDV into administration 'Vast majority' of LDV jobs to go
(about 1 hour later)
Vanmaker LDV has been placed into administration by a court, threatening up to 850 jobs and thousands more in the supply chain. The "vast majority" of vanmaker LDV's 850 employees will be made redundant, administrators have said.
Attempts to sell Birmingham-based LDV as a going concern have failed. A court placed the Birmingham-based firm into administration earlier, after its Russian owners said they had run out of options to rescue company.
Talks with one potential buyer, the Malaysian firm Weststar, broke down at the last minute last weekend, leading LDV to apply for administration. There are a further 1,200 people employed at the chain's dealerships, with an 4,000 people supplying parts.
It is feared that any buyer would take machinery abroad and continue making vans overseas Administrators said they was talking to "interested parties" who may be able to take on part of the business.
These included Weststar - the Malaysian firm which broke down at the last minute a week ago.
LDV's Washwood Heath plant has been at a near-standstill since before the end of 2008 during the search for a new owner.
Since 2006 the firm - formerly Leyland DAF Vans - has been owned by Russia's Gaz Group, controlled by Oleg Deripaska.
A Gaz spokesman said it was "a sad day for the LDV workforce, suppliers and British manufacturing".
'Potential'
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.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.
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.
Near-standstill
In addition to the workforce, LDV employs 1,200 people in dealerships and is a major customer for local suppliers.
Since 2006 the firm - formerly Leyland DAF Vans - has been owned by Russia's Gaz Group, controlled by Oleg Deripaska.
A Gaz spokesman said it was "a sad day for the LDV workforce, suppliers and British manufacturing".
LDV's Washwood Heath plant has been at a near-standstill since before the end of 2008 during the search for a new owner.
"The management team have worked exceptionally hard over the past few weeks and months but, despite every effort made around the globe, they've been unable to obtain the required funding from the banking system," said the firm's marketing manager, Guy Jones."The management team have worked exceptionally hard over the past few weeks and months but, despite every effort made around the globe, they've been unable to obtain the required funding from the banking system," said the firm's marketing manager, Guy Jones.
"Like much of industry, its access to this working capital remains an issue, which will go on to cause further job losses if not addressed.""Like much of industry, its access to this working capital remains an issue, which will go on to cause further job losses if not addressed."
He added he hoped that potential buyers would recognise "potential" in the firm and insisted there was the opportunity for "a bright future".He added he hoped that potential buyers would recognise "potential" in the firm and insisted there was the opportunity for "a bright future".
Administration benefitsAdministration benefits
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 of the takeover last week.However, Weststar pulled out of the takeover last week.
It has not commented on reports that it planned to swoop for LDV once it was in administration - a move which would mean it took on the firm with fewer debts.It has not commented on reports that it planned to swoop for LDV once it was in administration - a move which would mean it took on the firm with fewer debts.
"The benefit of buying a company out of administration is that the buyer is not taking on any liabilities and is able to only take the 'good bits'," said Alan Tomlinson, partner of licensed insolvency practitioner Tomlinsons."The benefit of buying a company out of administration is that the buyer is not taking on any liabilities and is able to only take the 'good bits'," said Alan Tomlinson, partner of licensed insolvency practitioner Tomlinsons.