Bridging the gap

The government has confirmed a £5m bridging loan to keep LDV afloat during its acquisition by Malaysian group, Weststar.

The four-week loan has been made available to improve the prospects of the company during its sale; however, the government has made it clear that this is a one-off financing agreement that cannot be extended.

In a statement, the management team at LDV said: ‘We appreciate that this is a difficult time for the government, but this support allows time for negotiations to be concluded to secure thousands of British jobs, when the alternative would almost certainly have been the loss of them all.’

LDV employed just fewer than 1,000 people last year, but was forced to make 95 redundant and lay-off a further 700 following difficult market conditions. Under these circumstances the company filed for administration last month, however, its application has since been delayed until 13 May when the case to continue the business will be presented.