LDV Vans apply for administration
The directors of beleaguered vanmaker LDV have applied for administration, raising fresh fears that hundreds of workers will lose their jobs. The Birmingham-based firm has not built any vehicles since last year after its Russian owner Gaz decided to sell the business.
A planned management buyout failed to materialise and the company has been trying to raise money from overseas investors for the past few months.
Chief executive Evgeniy Vereshchagin said in a letter to workers: “Despite all our efforts over the past few months, we have so far been unable to secure the investment required for the business.
“During the past few weeks, the global economic crisis has forced us to operate in exceptional conditions and we cannot continue in this position without funding indefinitely.
“We are still working with potential overseas investors who want to keep production in Birmingham, but they, like many people at this time, are finding it difficult to secure the necessary funds.
“We must now inform you that the deterioration in the position of the business has forced the directors to apply for administration. I must stress that this does not mean the business is in administration yet.”
The application will be processed on May 6 and the company said it has until that time to secure funding for its plans.
Workers have been paid up to the end of last week but the letter said the company was unable to confirm any further payments.
LDV, which employs several hundred workers, is owned by Russian oligarch Oleg Deripaska.
Source: Press Association
Get a CAP Used Car Valuation for just £3.50 - What The Professionals Use
The Motor Trade Insider Guide To Buying New Cars
- Fritz Henderson is stepping down as chief executive at US car giant General Motors, the company has announced and GM’s [...]...
- The sale of General Motors’ European operations to car parts giant Magna, backed by the Russian Sberbank, has left the [...]...
- Porsche says it is being forced to cut workers’ hours owing to a slump in sales. The company is predicting [...]...
- The Serious Fraud Office (SFO) has said it does not intend to launch a criminal investigation into the collapse of [...]...
- Malaysian firm Weststar has withdrawn from its planned deal to acquire LDV vans, forcing the firm to apply for administration. [...]...
- BBC News reveals that lenders owed billions of dollars by troubled carmaker Chrysler are prepared to swap this debt for [...]...
For those of you who thought bankers drafts were as good as cash, think again. It takes up to 5 days for a BD to clear and if it is stolen or a forgery your car can be long gone before the bank or you realise leaving you with no car and no money.
In that case what is the point of a bankers draft over a cheque? 
![[Valid RSS]](http://www.motor-trade-insider.com/images/valid-rss.png "Validate my RSS feed")
Recent Comments