LDV administration 'to be deferred'
Moves to place van maker LDV into administration are expected to be deferred after a last-minute deal was announced to rescue the firm and save thousands of jobs.
Talks to complete a takeover of the Birmingham-based manufacturer by Malaysian firm Weststar will continue following a Government loan of up to £5 million.
The factory, which employs 850 workers, has been at a standstill since before Christmas.
The company was due to go into administration, raising fears that the 850 workers would be made redundant and the jobs of thousands of employees at other companies would also be lost.
A court hearing is still set to go ahead in Birmingham, but it is expected to be deferred.
Guy Jones, a spokesman for LDV, told the Press Association that the deal had not been finalised, but Tuesday night's development was a "very positive step".
The sale could take weeks to be completed, although the Government has made it clear that the bridging loan was a "one- off", which could not be extended.
Unions warmly welcomed the breakthrough, but said trying to secure assistance to save LDV had been like "pulling teeth". The company has not built any vans since before Christmas, after its Russian owner, Gaz, decided to sell the business.
A planned management buy-out of LDV failed to materialise, and the company has been trying to raise money from overseas investors for the past few months.
The factory has been lying idle for months, and the few workers who remained were sent home last week, saying their situation had been a "nightmare".
