LDV vans on the brink of administration
It has been revealed this evening that the future of LDV vans is literally hanging by a thread after a much vaunted management buyout apparently collapsed last night. The company has repeatedly asked the UK government for up to £5 million in bridging loans and has repeatedly been refused access to further funding despite the fact it employs a significant number of people in the UK. So what next?
The UK government has prompted the van maker to look towards its Russian parent company for extra funding although it looks as though this avenue closed some time ago. With the company now on the brink of administration, despite rumoured interest from two overseas bidders, the government is now in a very difficult situation. Do they now stepping in at the last minute with a bridging loan, only for the company to go under further down the line, or do they sit back and let nature take its course with potentially thousands of further job losses in the UK?
Having initially managed to quell any move for funding, the UK government is now under intense pressure to step in and make some kind of commitment even though it is rumoured the authorities have already financed the business to the tune of £25 million some years ago. The history of this once proud UK van maker is very much in the balance.
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