Brown: No cash for LDV
February 23rd, 2009 by James Baggott
VAN maker LDV has been refused access to tax payer funds to help bail it out, the BBC has just reported.
‘The British taxpayer cannot be expected to pay for the company’s losses,’ the BBC reports a spokesperson for Gordon Brown said.
The maker is reported to have asked for £30 million in loans, to tide it over while a management buyout was completed.
Without the funds, the company may literally run out of cash – soon.
‘Unfortunately since the company is not producing, it is not making enough revenue to cover its costs and the company is literally running out of cash right as we speak,’ the BBC reported potential LDV savior Erik Eberhardson said.
The company is owned by Russian giant Gaz – a firm run by a friend of Lord Mandelson, Oleg Deripaska.
Without the Government funds, 900 LDV jobs are at risk, on top of thousands more in the wider supply chain.
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