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UK-based van maker LDV is reported this morning to have asked the UK government for urgent funds of up to £30 million (€35 million) to help it secure a management buyout from the Russian Gaz group.

UPDATE: The UK government turned down the request for funding.

LDV, which was the former Leyland Daf van making arm, suspended production in December. It employs around 900 people in Birmingham. It was bought by Gaz two years ago.

The management buyout is being planned by former Gaz chairman Erik Eberhardson and aims to convert LDV into a manufacturer of electric-powered vans. The company is warning that it could face closure if funds are not made available.

Eberhardson told the BBC this morning that the buyout needed short-term bridging finance from the UK government. "We are almost ready to go, but we need the government to do its bit," he said.