Birmingham-based van maker LDV has been forced to re-apply for administration after the Malaysian manufacturer Weststar pulled out of negotiations to buy it.

LDV’s application for administration is due to be heard in court today.

A spokesman for the firm said: “The directors of LDV Group have been forced to re-apply for administration to protect the assets of the business. This is due to the fact that essential funds required to maintain the business and workforce as a going concern are not being made available.”

LDV’s future looked to have been secured following a £5 million bridging loan from the Government which enabled it to enter into talks with Weststar (Fleet News, May 14). However, it appears Weststar’s private funding has not materialised.

LDV is owned by the Russian Gaz group, which is currently involved in negotiations to back a bid by Magna International to buy Vauxhall owner GM Europe.