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LDV (photo/David Jones/PA Wire)

Last month Malaysian firm Weststar agreed to buy the struggling company and the government pledged a £5 million four-week loan until the deal was sealed.

However, Weststar has withdrawn from its planned deal and LDV has applied for administration for the second time in four weeks.

BBC Midlands Today Transport Correspondent Peter Plisner told BBC WM's Ed Doolan:

"This morning LDV issued a statement to say that they were going back to court to re-apply for administration for the second time in less than a month.

LDV (photo/Simon Dawson/PA Wire)

"They said they were struggling to get hold of the money that the government promised - this was the £5 million bridging loan that was designed help the company through this period while West Star looked at exactly what they were buying.

"What seems to have happened is that Weststar - according to the government - have struggled to raise the money to buy LDV. It would appear that as a result of that the government have put the shutters down and stopped this flow of £5 million.

"It's an unprecedented situation and here we are facing yet another crisis in this fight to save the company."

John Lamb, from Birmingham Chamber of Commerce, said: "It's going to be a huge blow to the region if LDV can't be saved - 850 jobs on the line and about 3000 in the supply chain. It's going to need a miracle for LDV to bounce back this time."

Visit the LDV blog website to read the latest comments and developments since the announcement.

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