Bosses trying to put together a rescue deal at Birmingham vanmaker LDV have asked for an urgent meeting with Government officials next week to try and finalise a deal.

They are trying to assemble a management buyout with the aid of investment from an overseas company, believed to be Indian car-maker Mahindra & Mahindra.

No vans have been produced at the Washwood Heath factory since mid-December because of falling orders, but the 850-strong workforce has backed management by agreeing to a pay cut and shorter working week if the rescue deal succeeds.

But LDV efforts to secure a £5million bridging loan from the Lord Mandelson’s Department for Business Enterprise and Regulatory Reform (Berr) have so far been unsuccessful.

Berr wants LDV’s Russian parent company, vehicle giant Gaz, to put more money into the business.

But LDV’s bosses reckon Gaz, badly hit by economic woes in Russia, is unable to help.

Talks between LDV and the overseas investor havebeen going on since the weekend.

Company spokesman Guy Jones said: “Plans with the potential investor for LDV have progressed and they have requested a meeting with the government (Berr) as soon as possible next week, to try to finalise a solution to secure the future of LDV in the UK.”

But LDV claims its special vehicle operations arm has won orders for 250 vehicles, worth £5million, for customers including the Post Office, Jewsons, Kent Police, the Home Office Prison Service and Parcel Force.

Work on the specialist vehicles will start alongside normal van production if the rescue succeeds.