LDV needs £1m a week
LDV needs £1 million a week of Government money for up to two months to keep creditors at bay and safeguard all 850 jobs at the factory and thousands more in the supply chain.
The urgent need for a Government-backed loan to keep the Birmingham van-maker afloat was spelled out by LDV bosses yesterday as the battle for survival reached a critical stage.
LDV bosses spoke out as owners GAZ met investors – said to be Indian group Mahindra and Mahindra – in London to discuss off-loading the closure-threatened factory.
The Indians, who flew into the UK on Friday and met GAZ in the capital yesterday, have emerged as the key would-be investor who could help secure a management buy-out and save thousands of UK jobs from the scrapheap.
But all hopes of a new dawn for LDV rest on agreement from the Government to pump in up to £8 million in emergency funds whilst up to two months of due diligence is undertaken on LDV’s books.
Meanwhile, it is understood that business advisers PricewaterhouseCoopers are waiting in the wings as advisers to the Indians, raising fears of a Longbridge-style “lift and shift” operation at Washwood Heath if the Government does not come up with the cash.
LDV PR and marketing director Guy Jones said: “The critical thing is getting through the next few weeks. We are not going to get the money from anybody else.
“We need £1 million a week for a period to satisfy creditors and keep the headcount intact. Due diligence could take eight weeks so we are talking about £5 million to £10 million.
“Things really are coming to a head now – we have an investor that is willing to put money in but we need to bridge the next few weeks.”
Mr Jones said the investors had reassured LDV that their intentions were serious.
“We have had links with them for some time and have had meetings with them to confirm that they are credible and serious.
