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LDV back in administration as white knight Weststar decides to turn tail
VANMAKER LDV, backed by Russian oligarch Oleg Deripaska, is back in administration, after white knight Weststar rode out of town yesterday.
The Malaysian company agreed last month to buy LDV, which employs 850 people in the UK, after it halted production due to a collapse in demand for vehicles.
Weststar was the only bidder to express an interest in the company at the time.
The UK government had offered a £5m four-week bridge loan to Weststar, allowing it time to find investors in Malaysia, but the group was unable to secure funding.
“We gave LDV a breathing space, a bridge to the future but in the event, unfortunately, Weststar was unable to cross that bridge,” business minister Ian Pearson said.