LDV has applied for administration, but the Birmingham-based van manufacturer states that it is still looking for funding until its application is processed on 6 May.
In a letter to staff that was posted on the company's website, the firm's chief executive, Evgeniy Vereshchagin, says: "We must now inform you that the deterioration in the position of the business has forced directors to apply for administration. I must stress that this
does not mean the business is in administration yet.
"We are still working with potential overseas investors who want to keep production in Birmingham, but they, like many at this time, are finding it difficult to secure the necessary funds."
The letter also states that both hourly paid and full-time staff have been paid up to the end of last week, and at this point, the company is unable to confirm any further payments.
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