LDV crisis: Management buyout ruled out, overseas investors interested
Plans for a management buyout of troubled vanmaker LDV to save thousands of threatened jobs are "no longer an option" and the firm has been approached by two potential overseas investors, it was revealed today.
The Birmingham-based firm has not built any vehicles since before Christmas and has been attempting to put together a management buyout for several weeks.
Around 850 workers are employed at the plant and thousands more work for firms which supply LDV.
The company has been pressing the Government for a bridging loan, ranging from £4 million to £40 million, to restart production and press ahead with plans for a new "green" vehicle.
But it was learned today that a management buyout was no longer an option, and the firm has been approached by two overseas companies interested in investing in the business.
It is understood that LDV, which is owned by Russian firm Gaz, met with officials from Lord Mandelson's Business Department (Berr) in London today to discuss the future of the company.
A Berr spokesman said: "We understand that the management buyout is no longer an option. It has not been approved by parent company, Gaz. LDV has also now told us it has been approached by two potential investors. They are overseas companies.
"We are contacting these two potential investors today to find out more information about their level of interest in LDV. We are still seeking clarification on points raised in our recent letter to LDV.
"The Government has already invested £25 million in this plant, has rescheduled tax payments and has got agreement for their rent to be reduced."
It is understood that Berr officials will attempt to make sure that any investors will not shift production work overseas and establish how much would be invested in the Birmingham factory.
