Van-maker LDV was on the brink today with its management buyout team still unable to secure a £5 million bridging loan from the Government to see the company through the next few weeks.

Accountants PricewaterhouseCoopers were to be on standby to step in as administrators if the business fails in the coming days.

Intensive talks between LDV and the Lord Mandelson’s Department for Business Enterprise and Regulatory Reform (Berr) went on throughout the weekend but failed to secure a breakthrough.

Erik Eberhardson, leader of the management buyout team, said he was still hopeful a solution could be found.

He said a £5 million bridging loan would give LDV, which employs 850 workers in Washwood Heath, Birmingham, more time to seal a deal with potential overseas investors.

Sources close to the negotiations said two overseas companies were involved in talks with LDV management and Berr.

They are believed to be Mahindra & Mahindra, the Indian automotive group, and another Asian-based company.

Mr Eberhardson, said he was no less optimistic at the end of the weekend than he was on Friday, adding: “We are hopeful and I am happy that we are at a stage where we have both a hearing from the Government and clearly interested investors.”

No vans have been produced by LDV since mid December because of falling sales.

The workforce voted this week to accept a 10 per cent pay cut and three-day working week to reduce costs.