British van maker LDV is back in administration after potential Malaysian company Weststar walked away from a takeover.
It is just weeks since LDV received a government loan of £5 million, the cash was sanctioned by Business Secretary Lord Mandelson to smooth the sale of LDV which is owned by his friend Russian businessman Oleg Deripaska. The news will come as an embarrassment to Lord Mandelson, the loan to the Malaysian company had been intended to help it secure the purchase of LDV. Whitehall sources said the Malaysians had asked for a further £45 million which ministers refused as an unacceptable risk to taxpayer’s cash.
Weststar have pulled out of the deal which has forced LDV to reapply for administration to protect the assets of the business, the workforce has been sent home. LDV employs 850 staff in Birmingham.