LDV UPDATE: Weststar in the frame for failed vanmaker

Weststar has emerged as one of three potential buyers for LDV, the failed Birmingham-based vanmaker. 

Last week Weststar, the Malaysian vanmaker which makes Maxus vans under licence for asian markets, withdrew its offer to buy the business which triggered LDV's fall into administration on Monday (8 June).

PricewaterhouseCoopers, the administrator for LDV and its Birmingham Pressings subsidiary, confirmed to Motor Trader Weststar has expressed an interest but declined to name the other two bidders.

Options under review
"Over the coming days we will review all options for the companies and seek a buyer for the business and assets. We have already been approached by three parties wishing to engage with us, and we will try to ensure that a solution is found to provide a structure to take the business forward," said Rob Hunt, joint administrator and partner at PricewaterhouseCoopers.

Weststar withdrew its initial purchase offer citing a lack of finance. It had planned to restart Drews Lane production in July.

Redundancy notices
The administrators have served redundancy notices on the majority of the 850-strong workforce at LDV's combined operation at Drews Lane.

"Due to the lack of funding it has, regrettably, been necessary to make the majority of the workforce redundant and we will retain a skeleton workforce of around 40 people to maintain the site," said Rob Hunt, joint administrator and partner at PricewaterhouseCoopers.

Production at LDV was suspended in December 2008 after falling sales prompted Gaz Group, its Russian owner, to sell it.

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u181117 said:

	... Well, it's a fact that it will be cheaper to pick up the pieces from the reciever than buying the company. The government loan also had strings attached with jobs. Buying off the reciever won't and savings will include debt and redundancy payments They will buy it and ship it abroad, if they don't they will have no Maxxus's to build under licence and part of Weststar will collapse.
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June 09, 2009
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