Just hours before troubled van maker LDV was due to go into administration, the Government agreed to give it a multi-million pound bridging loan to keep it as a going concern while its sale to Malaysian manufacturer Weststar is completed.

The loan and sale of the company mean it is now able to talk once again to potential fleet customers.

The £5 million loan protects the van maker from the administrators for at least a month.

The Government has stipulated that the loan will not be extended or increased.

With its factory out of action since December, LDV’s stocks have been significantly reduced – it has just 600 road-ready vans still for sale across all its UK dealers.

“There is stock for initial fleet orders,” said LDV spokesman, Guy Jones.

“But once we start production again, because we are based in England we can meet orders within three to four weeks, which is far quicker than other manufacturers.”

However, while the sale completes, the company cannot confirm when production will restart, although Jones said it is now very keen to talk to fleets about taking new orders.

LDV was due in court last Wednesday at which point it would have gone into administration.

However, following the Government’s eleventh hour intervention, the hearing was adjourned and LDV kept its head above water.

“Our case was prepared for us to go into administration,” said Jones.

“At eight o’clock the evening before we got confirmation of the loan and so we asked for a week’s adjournment.”

The case to end the administration process is now expected to be a formality.

“The Government agreed to make available a one-off £5 million bridging loan facility to prevent LDV going into administration and to facilitate the purchase of the company by Weststar of Malaysia,” said business minister Ian Pearson.

"Weststar's proposed purchase of LDV offers the only credible chance of keeping this manufacturing plant in the UK.

"Whilst completion of the deal is not certain, it would have been irresponsible of the Government not to support it going forward.

"But this is a one-off bridging loan and it cannot be extended."