LDV crisis: Talks continue in bid to secure future of LDV
Mar 21 2009 by Catherine Lillington, Birmingham Mail
The LDV factory in Washwood Heath in 1998.
THE future of crisis-hit LDV hangs in the balance this weekend as proposals for a management buyout to save the firm appear to have fallen through.
As yesterday’s deadline passed for the payment of a £1 million tax bill, confusion still surrounds an approach by two unnamed overseas investors who have expressed an interest in the struggling company.
Plans to save the Birmingham vanmaker, which employs 850 at its Washwood Heath plant and thousands more in the supply chain, were being discussed by Russian owners GAZ.
LDV managers were continuing negotiations with the Government and investors over the weekend, as sources close to the business insisted the buyout deal could still be saved.
The company insisted the proposed management buy-out, led by outgoing GAZ chairman Erik Eberhardson, was still an option and the deferral of the massive tax bill was still subject to discussions.
A spokesman said: “The LDV management team want to stress that they are continuing to work today and over the weekend to secure the future of the plant with investors and the Government.”
A Gaz source said: “All options are still under consideration and everyone involved is working day and night to secure the future of the company in Birmingham.”
