‘Weststar’s proposed purchase of LDV offers the only credible chance of keeping this manufacturing plant in the UK,’ said business minister Ian Pearson.
‘While completion of the deal is not certain, it would have been irresponsible of the government not to support it going forward. But this is a one-off bridging loan and it cannot be extended,’ he added.
Over the past few weeks, the directors of LDV were forced to apply for administration to protect the assets of the business and a court hearing was processed this morning.
Now, following the confirmation of Weststar as an investor in the company, coupled with the support of the government, a decision has been taken to delay the hearing until 13 May, when the case to continue the business will be presented.
While a sale has been agreed, LDV said that it will take another few weeks to be completed and the loan from the government is to enable the business to continue operating as this process takes place.
‘This is clearly a significant development for LDV and a major step towards a new future for the company, but there are still major steps to be competed over the next few weeks,’ said an LDV spokesperson.